Compute the required safety stock when weekly demand is 100 units, lead time is 2 weeks, the desired service level is 98% (which corresponds to 2.06 standard deviations from the mean) and the standard deviation of demand during lead time is 30 units.
The materials manager for a billiard ball maker must periodically place orders for resin, one of the raw materials used in producing billiard balls. She knows that manufacturing uses resin at a rate of 50 kilograms each day, and that it costs $.04 per day to carry a kilogram of resin in inventory. She also knows that the order costs for resin are $100 per order, and that the lead time for delivery is four (4) days. Assume 365 days in a year.
A) 25 units
B) 48 units
C) 62 units
D) 75 units
C) 62 units
You might also like to view...
Organizations using a matrix structure
A. contain multiple overlapping command structures, in which all employees report to three or more managers. B. centralize authority into a single person. C. contain two command structures, in which some people report to two bosses. D. establish a hierarchy in which employees report to only one supervisor. E. utilize teams or workgroups with few lines of authority.
The number of times the accounts receivable turned over, or were collected, during the accounting period is called the ____________________
Fill in the blank(s) with correct word
Advertisers who follow the localized approach are skeptical of the global-village argument
Indicate whether the statement is true or false
Harrison Industries produces 4,00 . lunch boxes each day. The average number of units in work in process is 12,000 . having an average cost of $60,000 . The annual carrying costs related to inventory are 10%. Consultants have determined that the work in process could be reduced by as much as a third by rearranging the factory floor. What would the throughput time be if Harrison implements the
recommended changes? a. Twelve hours b. One day c. Two days d. Three days