OPERATIONS MANAGEMENT LL W/CONNECT CODE
2nd Edition
ISBN: 9781266520037
Author: CACHON
Publisher: MCG CUSTOM
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Chapter 14, Problem 16CQ
Summary Introduction
To explain: The likely discovery Person AL will make with respect to the distribution center regarding the on-hand inventory.
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Students have asked these similar questions
3. Daily demand for tablets of amazon is normally
distributed, with a mean of 100 and standard
deviation of 30. The tablet supplier takes an average
of 15 days to replenish inventory at Amazon. The
standard deviation of the supplier lead time is 5 days.
Amazon follows a "periodic review policy" with a
review period of 30 days. Amazon is targeting a CSL
of 98% for its tablet inventory. (a) What is the mean
demand during lead time and review period?
What is the standard deviation of demand during
lead time and review period? (c) What is the safety
(b)
stock (in units) during lead time and review period?
Algro Inc. keeps a wide range of parts and materials on hand for use in its production
processes. Management has recently had difficulty managing parts inventory as demand
for its finished goods has increased; they frequently run out of some critical parts while
having an endless supply of others. They would like to classify their parts inventory
according to the ABC approach to better control inventory. The following is a list of
parts, along with their annual usage and unit value:
Item
Annual
Unit
Item
Annual
Unit
Number
Usage
Cost
Number
Usage
Cost
1
36
$350
2
510
30
3
50
23
4
300
45
5
18
1900
6
500
8
7
710
4
8
80
26
9
344
28
10
67
440
11
510
2
12
682
35
13
1216
95
50
14
10
3
15
820
1
KARAN2222222222
16
60
$610
17
120
20
18
270
15
19
45
50
20
19
3200
21
910
3
12
4750
23
30
2710
24
24
1800
25
870
105
26
244
30
27
750
15
28
45
110
29
46
160
30
165
25
a. Classify the inventory items according to the ABC approach using the dollar
value of annual demand.
b. Clearly explain why you…
Demand in each period is normally distributed with a mean of 100 and standard deviation of 50. Assuming demand across periods are independent, what is the standard deviation of the total demand over 4 periods?
Chapter 14 Solutions
OPERATIONS MANAGEMENT LL W/CONNECT CODE
Ch. 14 - Demand in each period follows the same normal...Ch. 14 - Prob. 2CQCh. 14 - For products with slow-moving demandfor example,...Ch. 14 - Prob. 4CQCh. 14 - Prob. 5CQCh. 14 - Prob. 6CQCh. 14 - Prob. 7CQCh. 14 - Prob. 8CQCh. 14 - If the target in-stock probability increases, then...Ch. 14 - Prob. 10CQ
Ch. 14 - Prob. 11CQCh. 14 - Prob. 12CQCh. 14 - Prob. 13CQCh. 14 - Prob. 14CQCh. 14 - Prob. 15CQCh. 14 - Prob. 16CQCh. 14 - Prob. 17CQCh. 14 - Prob. 18CQCh. 14 - Prob. 19CQCh. 14 - Prob. 1PACh. 14 - Prob. 2PACh. 14 - Prob. 3PACh. 14 - Prob. 4PACh. 14 - You are the owner of Hotspices.com, an online...Ch. 14 - Prob. 6PACh. 14 - Prob. 7PACh. 14 - Prob. 8PACh. 14 - Prob. 9PACh. 14 - Prob. 10PACh. 14 - Prob. 11PACh. 14 - Prob. 1CCh. 14 - Prob. 2CCh. 14 - Prob. 3CCh. 14 - CASE WARKWORTH FURNITURE1 Warkworth Furniture...Ch. 14 - CASE WARKWORTH FURNITURE1 Warkworth Furniture...
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