Homework Help is Here – Start Your Trial Now!
Business
Operations Management
a. What amount of safety stock is appropriate? (Round your answer to the nearest whole number.) Safety stock units b. How much of this item should be reordered? (Round your answer to the nearest whole number.) ROP units c. What risk of stockout would result from a decision not to have any safety stock?

a. What amount of safety stock is appropriate? (Round your answer to the nearest whole number.) Safety stock units b. How much of this item should be reordered? (Round your answer to the nearest whole number.) ROP units c. What risk of stockout would result from a decision not to have any safety stock?

Practical Management Science
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...
See similar textbooks
icon
Related questions
Question

Operations Management

Given this information: Lead-time demand = 590 pounds Standard deviation of lead time demand = 43 pounds (Assume normality.) Acceptable stockout risk during lead time = 2 percent Use Table a. What amount of safety stock is appropriate? (Round your answer to the nearest whole number.) Safety stock b. How much of this item should be reordered? (Round your answer to the nearest whole number.) ROP units Stockout risk units c. What risk of stockout would result from a decision not to have any safety stock? %
Transcribed Image Text:Given this information: Lead-time demand = 590 pounds Standard deviation of lead time demand = 43 pounds (Assume normality.) Acceptable stockout risk during lead time = 2 percent Use Table a. What amount of safety stock is appropriate? (Round your answer to the nearest whole number.) Safety stock b. How much of this item should be reordered? (Round your answer to the nearest whole number.) ROP units Stockout risk units c. What risk of stockout would result from a decision not to have any safety stock? %
Expert Solution
trending now

Trending now

This is a popular solution!

steps

Step by step

Solved in 3 steps with 4 images

SEE SOLUTIONCheck out a sample Q&A here
Blurred answer
Recommended textbooks for you
Practical Management Science
Practical Management Science
Operations Management
ISBN:
9781337406659
Author:
WINSTON, Wayne L.
Publisher:
Cengage,
Operations Management
Operations Management
Operations Management
ISBN:
9781259667473
Author:
William J Stevenson
Publisher:
McGraw-Hill Education
Operations and Supply Chain Management (Mcgraw-hi…
Operations and Supply Chain Management (Mcgraw-hi…
Operations Management
ISBN:
9781259666100
Author:
F. Robert Jacobs, Richard B Chase
Publisher:
McGraw-Hill Education
Business in Action
Business in Action
Operations Management
ISBN:
9780135198100
Author:
BOVEE
Publisher:
PEARSON CO
Purchasing and Supply Chain Management
Purchasing and Supply Chain Management
Operations Management
ISBN:
9781285869681
Author:
Robert M. Monczka, Robert B. Handfield, Larry C. Giunipero, James L. Patterson
Publisher:
Cengage Learning
Production and Operations Analysis, Seventh Editi…
Production and Operations Analysis, Seventh Editi…
Operations Management
ISBN:
9781478623069
Author:
Steven Nahmias, Tava Lennon Olsen
Publisher:
Waveland Press, Inc.
SEE MORE TEXTBOOKS