1. Given the following inventory system: average weekly (7 days a week) demand is 1000 units with a standard deviation of 100 units, review period is 28 days (4 weeks), lead time is 14 days (2 weeks) and the target service probability is 90%. What is the appropriate level of safety stock? 2. Given the following inventory system: average weekly (7 days a week) demand is 1000 units with a standard deviation of 100 units, review period is 28 days (4 weeks), lead time is 14 days (2 weeks) and the target service probability is 90%. Currently, inventory on hand is 50 units. How many units should be ordered? 3. Given the following inventory system: average weekly (7 days a week) demand is 1000 units with a standard deviation of 100 units, review period is 28 days (4 weeks), lead time is 14 days (2 weeks) and the target service probability is 90%. Currently, inventory on hand is 500 units. How many units should be ordered? 4. A product has an average daily demand of 400 units with standard deviation of 100 units. Lead-time is 1 day. If management would like to satisfy all demand in 80% of the cycles, what is the reorder point? 5. A product has an average daily demand of 400 units with standard deviation of 10.0 units. Lead-time is 1 day. If management would like to satisfy all demand in 80% of the cycles, what is the reorder point? 6. A product sells for $24 per unit and costs the retailer $12 per unit, unsold units by the end of the season are salvaged for $7.0. Demand is normally distributed with a mean of 1000 units and standard deviation of 100 units. How many units should the retailer order? 7. A product sells for $24 per unit and costs the retailer $12 per unit, unsold units by the end of the season are salvaged for $9.0. Demand is normally distributed with a mean of 1000 units and standard deviation of 100 units. How many units should the retailer order?
1. Given the following inventory system: average weekly (7 days a week) demand is 1000 units with a standard deviation of 100 units, review period is 28 days (4 weeks), lead time is 14 days (2 weeks) and the target service probability is 90%. What is the appropriate level of safety stock? 2. Given the following inventory system: average weekly (7 days a week) demand is 1000 units with a standard deviation of 100 units, review period is 28 days (4 weeks), lead time is 14 days (2 weeks) and the target service probability is 90%. Currently, inventory on hand is 50 units. How many units should be ordered? 3. Given the following inventory system: average weekly (7 days a week) demand is 1000 units with a standard deviation of 100 units, review period is 28 days (4 weeks), lead time is 14 days (2 weeks) and the target service probability is 90%. Currently, inventory on hand is 500 units. How many units should be ordered? 4. A product has an average daily demand of 400 units with standard deviation of 100 units. Lead-time is 1 day. If management would like to satisfy all demand in 80% of the cycles, what is the reorder point? 5. A product has an average daily demand of 400 units with standard deviation of 10.0 units. Lead-time is 1 day. If management would like to satisfy all demand in 80% of the cycles, what is the reorder point? 6. A product sells for $24 per unit and costs the retailer $12 per unit, unsold units by the end of the season are salvaged for $7.0. Demand is normally distributed with a mean of 1000 units and standard deviation of 100 units. How many units should the retailer order? 7. A product sells for $24 per unit and costs the retailer $12 per unit, unsold units by the end of the season are salvaged for $9.0. Demand is normally distributed with a mean of 1000 units and standard deviation of 100 units. How many units should the retailer order?
Practical Management Science
6th Edition
ISBN:9781337406659
Author:WINSTON, Wayne L.
Publisher:WINSTON, Wayne L.
Chapter2: Introduction To Spreadsheet Modeling
Section: Chapter Questions
Problem 20P: Julie James is opening a lemonade stand. She believes the fixed cost per week of running the stand...
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![1. Given the following inventory system: average weekly (7 days a week) demand is 1000 units with a standard
deviation of 100 units, review period is 28 days (4 weeks), lead time is 14 days (2 weeks) and the target service
probability is 90%. What is the appropriate level of safety stock?
2. Given the following inventory system: average weekly (7 days a week) demand is 1000 units with a standard
deviation of 100 units, review period is 28 days (4 weeks), lead time is 14 days (2 weeks) and the target service
probability is 90%. Currently, inventory on hand is 50 units. How many units should be ordered?
3. Given the following inventory system: average weekly (7 days a week) demand is 1000 units with a standard
deviation of 100 units, review period is 28 days (4 weeks), lead time is 14 days (2 weeks) and the target service
probability is 90%. Currently, inventory on hand is 500 units. How many units should be ordered?
4. A product has an average daily demand of 400 units with standard deviation of 100 units. Lead-time is 1 day. If
management would like to satisfy all demand in 80% of the cycles, what is the reorder point?
5. A product has an average daily demand of 400 units with standard deviation of 10.0 units. Lead-time is 1 day. If
management would like to satisfy all demand in 80% of the cycles, what is the reorder point?
6. A product sells for $24 per unit and costs the retailer $12 per unit, unsold units by the end of the season are
salvaged for $7.0. Demand is normally distributed with a mean of 1000 units and standard deviation of 100 units. How
many units should the retailer order?
7. A product sells for $24 per unit and costs the retailer $12 per unit, unsold units by the end of the season are
salvaged for $9.0. Demand is normally distributed with a mean of 1000 units and standard deviation of 100 units. How
many units should the retailer order?](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F1dafe049-f9b9-4486-be95-08611377b4e6%2F8c65a7a2-6939-4a08-af7a-db6a1c72ce48%2Fzs6zo0a_processed.jpeg&w=3840&q=75)
Transcribed Image Text:1. Given the following inventory system: average weekly (7 days a week) demand is 1000 units with a standard
deviation of 100 units, review period is 28 days (4 weeks), lead time is 14 days (2 weeks) and the target service
probability is 90%. What is the appropriate level of safety stock?
2. Given the following inventory system: average weekly (7 days a week) demand is 1000 units with a standard
deviation of 100 units, review period is 28 days (4 weeks), lead time is 14 days (2 weeks) and the target service
probability is 90%. Currently, inventory on hand is 50 units. How many units should be ordered?
3. Given the following inventory system: average weekly (7 days a week) demand is 1000 units with a standard
deviation of 100 units, review period is 28 days (4 weeks), lead time is 14 days (2 weeks) and the target service
probability is 90%. Currently, inventory on hand is 500 units. How many units should be ordered?
4. A product has an average daily demand of 400 units with standard deviation of 100 units. Lead-time is 1 day. If
management would like to satisfy all demand in 80% of the cycles, what is the reorder point?
5. A product has an average daily demand of 400 units with standard deviation of 10.0 units. Lead-time is 1 day. If
management would like to satisfy all demand in 80% of the cycles, what is the reorder point?
6. A product sells for $24 per unit and costs the retailer $12 per unit, unsold units by the end of the season are
salvaged for $7.0. Demand is normally distributed with a mean of 1000 units and standard deviation of 100 units. How
many units should the retailer order?
7. A product sells for $24 per unit and costs the retailer $12 per unit, unsold units by the end of the season are
salvaged for $9.0. Demand is normally distributed with a mean of 1000 units and standard deviation of 100 units. How
many units should the retailer order?
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