Homework Help is Here – Start Your Trial Now!
Business
Operations Management
d. Calculate the safety stock and reorder point for SKU J102, assuming its daily demand is constant at 30 units per day, lead time is normally with a mean of 6 days and standard deviation of 3 days and must operate at a 95% service level. Calculate the safety stock and reorder point for SKU J104 assuming its daily demand is normally distributed with a mean of 20 units and a standard deviation of 4 days. The lead time is also normally distributed with a mean of 8 days, standard deviation of 4 days and a service level of 90% is required.

d. Calculate the safety stock and reorder point for SKU J102, assuming its daily demand is constant at 30 units per day, lead time is normally with a mean of 6 days and standard deviation of 3 days and must operate at a 95% service level. Calculate the safety stock and reorder point for SKU J104 assuming its daily demand is normally distributed with a mean of 20 units and a standard deviation of 4 days. The lead time is also normally distributed with a mean of 8 days, standard deviation of 4 days and a service level of 90% is required.

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

help please, just need help with C and D 

Calculate the safety stock and reorder point for SKU J102, assuming its daily demand is constant at 30 units per day, lead time is normally with a mean of 6 days and standard deviation of 3 days and must operate at a 95% service level. d. Calculate the safety stock and reorder point for SKU J104 assuming its daily demand is normally distributed with a mean of 20 units and a standard deviation of 4 days. The lead time is also normally distributed with a mean of 8 days, standard deviation of 4 days and a service level of 90% is required.
Transcribed Image Text:Calculate the safety stock and reorder point for SKU J102, assuming its daily demand is constant at 30 units per day, lead time is normally with a mean of 6 days and standard deviation of 3 days and must operate at a 95% service level. d. Calculate the safety stock and reorder point for SKU J104 assuming its daily demand is normally distributed with a mean of 20 units and a standard deviation of 4 days. The lead time is also normally distributed with a mean of 8 days, standard deviation of 4 days and a service level of 90% is required.
Problem #2 - Jasper Inc. has four different air conditioning SKUS: J101, J102, J103 and J104. The following four questions requires you to provide recommendation to their approach for safety stock and reorder point for these SKUS. a. SKU J101 has a demand that is normally distributed during the lead time, with a mean of 500 units and standard deviation of 10. If Jasper cannot have stockouts in more than 5% of the time in any order, how much safety stock should be maintained and at what reorder point? b. Calculate the safety stock and reorder point for SKU J102, assuming that its daily demand is normally distributed with a mean of 25, standard deviation of 5, lead time is 5 days, and must operate at 90% service level. C. Calculate the safety stock and reorder point for SKU J102, assuming its daily demand is constant at 30 units per day, lead time is normally with a mean of 6 days and standard deviation of 3 days and must operate at a 95% service level.
Transcribed Image Text:Problem #2 - Jasper Inc. has four different air conditioning SKUS: J101, J102, J103 and J104. The following four questions requires you to provide recommendation to their approach for safety stock and reorder point for these SKUS. a. SKU J101 has a demand that is normally distributed during the lead time, with a mean of 500 units and standard deviation of 10. If Jasper cannot have stockouts in more than 5% of the time in any order, how much safety stock should be maintained and at what reorder point? b. Calculate the safety stock and reorder point for SKU J102, assuming that its daily demand is normally distributed with a mean of 25, standard deviation of 5, lead time is 5 days, and must operate at 90% service level. C. Calculate the safety stock and reorder point for SKU J102, assuming its daily demand is constant at 30 units per day, lead time is normally with a mean of 6 days and standard deviation of 3 days and must operate at a 95% service level.
Expert Solution
steps

Step by step

Solved in 3 steps

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