3. Daily demand for tablets of amazon is normallydistributed, with a mean of 100 and standarddeviation of 30. The tablet supplier takes an averageof 15 days to replenish inventory at Amazon. Thestandard deviation of the supplier lead time is 5 days.Amazon follows a "periodic review policy" with areview period of 30 days. Amazon is targeting a CSLof 98% for its tablet inventory. (a) What is the meandemand during lead time and review period?What is the standard deviation of demand duringlead time and review period? (c) What is the safety(b)stock (in units) during lead time and review period?

Here, the firm is following a periodic review policy, the review period is 30 days, considering the…

Answered: 3. Daily demand for tablets of amazon…

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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Sorlini Pasta sells pasta throughout Italy. Which of the following is the strongest evidence that Sorlini Pasta is suffering from the bullwhip effect?a. They hold a considerable amount of inventory, enough to satisfy their average demandfor the next four weeks.b. Just before a snowstorm in the northern part of the country, sales of pasta increasedconsiderably.c. Sorlini sells both fresh and dry pasta products through different types of retailers.d. Most retailers only carry a subset of all of the pastas Sorlini offers.e. The volatility of the orders Sorlini receives from its distributors is greater than thevolatility of pasta demand at retailers.f. Pasta consumption per capita in southern Italy is higher than in northern Italy.
Q1) Cannon sells 22mm lens for digital cameras. The manager considers using a continuous review policy to manage the inventory of this product and he is planning for the reorder point and the order quantity in 2021 taking the inventory cost into account. The annual demand for 2021 is forecasted as 400+10*6 and expected to be fairly stable during the year. Other relevant data is as follows: The standard deviation of the weekly demand is 10. Targeted cycle service level is 90% (no-stock out probability) Lead time is 4 weeks Each 22mm lens costs $2000 Annual holding cost is 25% of item cost, i.e. H=$ 500. Ordering cost is $1000 per order Using your student number calculate the annual demand. (e.g., for student numberBBAW190102, the last digit is 2 and the annual demand is 400+10*6=420) Using the annual demand forecast, calculate the weekly demand forecast for 2021 (Assume 52 weeks in a year)? What is the economic order quantity, E0Q? What is the reorder point and safety stock? 5-…
15-8
Explore the limitations and assumptions of the Wilson approach and discuss how they can impact decision-making in real-world supply chain scenarios.
Asia Furnishing is a retailer of modular toilet products. Currently, the lead time for one of the products, the toilet door, is relatively high, at 5 weeks. The average demand for toilet doors is 200 per week. The standard deviation of demand during the lead time is 85 doors. The store plans to provide a service level of 99 per cent. (a) The store is looking for another supplier who can supply the doors in one week at the same price. Analyse how much safety stock can be reduced by moving to the new supplier without reducing the 99 per cent cycle-service level. (b) The store hired a new manager who insists on using a probability distribution for the lead time of supply, instead of a fixed lead time. Based on the historical data from the present supplier, she estimated that the standard deviation of lead time is 1 week. How will the amount of safety stock change after including this information? What should be the reorder level for the store? Do state all…
Maxantene Products buys 300,000 units of a crucial input per year from a supplier that fulfills its orders within two days after receiving them. Maxantene Product submits its orders directly to the supplier through a Web interface, so its lead time is the supplier two day turnaround time. Each order cost Maxantene Products about P500 to place, while carrying cost are about P60 per unit per year. The company seek to maintain a five day usage level in a safety stock. Assume a 365 day year. ------------- a.What is Maxantene Products economic order quantity for this input? b. What is Maxantene Products' carrying cost at the EOQ? * c. At what inventory level of this input should Maxantene re-order?
Consider a supply chain with a manufacturer (M) and a retailer (R). The manufacturer produces a product A at a cost of c = $50. The manufacturer offers the product to the retailer at a wholesale price of w = $70, and fixes the sale price to p = $90. The market demand is normally distributed with mean of 10,000 units and standard deviation of 1000. Answer the following questions: a. What is the optimal order quantity for the retailer? b. What is the optimal order quantity if the wholesale price is changed to $60? Does the optimal order quantity increase or decrease compared to 1a? Why? c. What is the optimal order quantity if the wholesale price is changed to $80? Does the optimal order quantity increase and decrease compared to 1a? Why? d. If the actual market demand is equal to the mean demand, then what are the profits of the manufacturer and the retailer?
In a Q system, the demand rate for strawberry ice cream is normally distributed, with an average of 295 pints per week. The lead time is 6 weeks. The standard deviation of weekly demand is 16 pints. Refer to the standard normal table for z-values. a. The standard deviation of demand during the 6-week lead time is 39 pints. (Enter your response rounded to the nearest whole number.) b. The average demand during the 6-week lead time is 1770 pints. (Enter your response as an integer.) c. The reorder point that results in a cycle-service level of 96 percent is pints. (Enter your response rounded to the nearest whole number.)
Select any one business in Oman and write about the internal control issue procedures followed in that business related to Inventory management system in detail.
Put this in other words. Analyze and elaborate this one. In the intricate orchestration of supply chain management, predictive analytics emerges as an indispensable conductor. Drawing upon colossal datasets from multifarious sources, predictive analytics unfurls a tapestry of precise supply and demand prognostications, meticulous inventory optimization, seamless logistics orchestration for punctual deliveries, anticipation of equipment maintenance exigencies, and the nimble adaptation to unforeseen contingencies. In this ever-evolving landscape, predictive analytics has metamorphosed into a critical lever for cultivating an agile and resilient supply chain, warding off disruptions, and laying the foundations for sustainable success.
The U.S. Airfilter company has hired you as a supply chain consultant. The company makes air filters for residential heating and air- conditioning systems. These filters are made in a single plant located in Louisville, Kentucky, in the United States. They are distributed to retailers through wholesale centers in 100 locations in the United States, Canada, and Europe. You have collected the following data relating to the value of inventory in the U.S. Airfilter supply chain: QUARTER 1 QUARTER 3 (JULY THROUGH QUARTER 4 QUARTER 2 (APRIL THROUGH JUNE) (JANUARY (OCTOBER THROUGH THROUGH MARCH) SEPTEMBER) DECEMBER) All amounts in millions of U.S. dollars Sales (total quarter): United states 356 532 552 436 Canada 130 127 116 151 Europe 42 34 49 24 Cost of goods sold (total quarter) 338 445 465 398 Raw materials at the Louisville plant (end-of-quarter) 93 49 79 89 Work-in-process and finished goods at the Louisville plant (end-of-quarter) 194 175 127 176 Distribution center inventory…
Describe the actions that purchasing can take to reduce uncertainty associated with (a) supplier quality, (b) supplier delivery, (c) long order-cycle times, (d) extended material pipelines, and (e) inaccurate demand forecasts.

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