Homework Help is Here – Start Your Trial Now!
Business
Operations Management
Bea Alvarez consumes 300,000 units of spare part per year. The average purchase lead time is 20 working days while the maximum is 29 working days. The company's annual operation cover 240 days allowing for shutdown for plant maintenance , holiday and Sunday. Ms Bea likes to keep a safety stock or extra to guard against stock-outs. How many units should be kept in the safety stock?

Bea Alvarez consumes 300,000 units of spare part per year. The average purchase lead time is 20 working days while the maximum is 29 working days. The company's annual operation cover 240 days allowing for shutdown for plant maintenance , holiday and Sunday. Ms Bea likes to keep a safety stock or extra to guard against stock-outs. How many units should be kept in the 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
100%

Bea Alvarez consumes 300,000 units of spare part per year. The average purchase lead time is 20 working days while the maximum is 29 working days. The company's annual operation cover 240 days allowing for shutdown for plant maintenance , holiday and Sunday. Ms Bea likes to keep a safety stock or extra to guard against stock-outs. How many units should be kept in the safety stock?  

Expert Solution
steps

Step by step

Solved in 2 steps

SEE SOLUTIONCheck out a sample Q&A here
Blurred answer
Similar questions
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