M09_CL_Template AR,AR,SP
xlsx
keyboard_arrow_up
School
Stevens Institute Of Technology *
*We aren’t endorsed by this school
Course
421
Subject
Industrial Engineering
Date
Feb 20, 2024
Type
xlsx
Pages
7
Uploaded by BailiffKangarooMaster1570
NAME
Anthony Rizzuto, Adri
PLEDGE
I pledge my honor tha
Fill in:
Demand per week
D
550
1
Std dev of demand
σD
115
Lead Time (weeks)
L
3
2
Reorder Point
ROP
1,950
Order size
Q
1,500
3
Calculate using Excel:
Demand during L
DL
1,650
4
St Dev during L
σL
199
5
6
7
8
9
10
ian Ramushi, Sofia Pazmino
at I have abided by the Stevens Honor System.
SAFETY INVENTORY
All solutions must be calculated using Excel.
How much safety inventory does the store carry?
ss
What is the cycle inventory?
What is the average inventory?
What is the average flow time?
What desired Cycle Service Level (CSL) does BestBuy achieve as a result of this policy?
What would be the safety inventory if BestBuy wants a CSL of 95%?
ss
What would be the ESC with 95% CSL?
What would be the fill rate based on your answer to #7? (Q-ESC)/Q
If the warehouse reduces the lead time to 1 week, what would happen
to the Reorder Point?
What would be the expected shortage per replenishment cycle (ESC) with the given BestBuy CSL (i.e. answers from 1-5)?
300
750 units
1,050 units
1.91
0.93
328
Formula in Chapter 12
6 units
Formula 12.9 from textbook
37 units
Formula 12.9 from textbook
0.996
Formula in Chapter 12
850
If the lead time is reduced to 1 week, the Reorder Point would decrease
Your preview ends here
Eager to read complete document? Join bartleby learn and gain access to the full version
- Access to all documents
- Unlimited textbook solutions
- 24/7 expert homework help
1. What can BJ’s Club do to lower its safety inventory?
2 What can BJ’s Club do to raise its Cycle Service Level?
3. What is the role of safety inventory in the supply chain?
4. Explain how a reduction in lead time uncertainty can help a supply chain reduce safe
BJ's can lower their safety inventory by reducing the uncertainty in their demand throug
their safety inventory, which would help lower the need for buffer inventory.
To raise its Cycle Service Level, BJ's Club can increase their safety invetory. By increasing
increases the Cycle Service Level.
The role of safety invetory in the supply chain is to satisfy the demand that exceeds a for
companies/retailers have in case if they get more business than anticipated in an interva
Not knowing the delivery time helps us have less need for excess inventory security. A su
All this helps you have less transportation costs in maintaining security. The product that
and without damaging the availability of the product.
ety inventory without hurting product availability.
gh demand forecasting. Reducing lead times would also help to lower g the safety invetory, the fill rate also increases, which in additon recasted amount in a given period. In summary, it is the backup supply al of time.
Your preview ends here
Eager to read complete document? Join bartleby learn and gain access to the full version
- Access to all documents
- Unlimited textbook solutions
- 24/7 expert homework help
upply chain becomes easier when the inventory is only what we need. t is delivered on time, the inventory will be done with greater precision