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Operations Management
DEMAND DURING LEAD TIME PROBABILITY 40 .1 50 .2 60 .2 70 .2 80 .2 90 .1 1.0

DEMAND DURING LEAD TIME PROBABILITY 40 .1 50 .2 60 .2 70 .2 80 .2 90 .1 1.0

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...
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Mr. Beautiful, an organization that sells weight training
sets, has an ordering cost of $40 for the BB-1 set. (BB-1 stands for
Body Beautiful Number 1.) The carrying cost for BB-1 is $5 per set
per year. To meet demand, Mr. Beautiful orders large quantities of
BB-1 7 times a year. The stockout cost for BB-1 is estimated to be
$50 per set. Over the past several years, Mr. Beautiful has observed
the following demand during the lead time for BB-1:                                                                                        The reorder point for BB-1 is 60 sets. What level of safety stock
should be maintained for BB-I?
DEMAND DURING LEAD TIME PROBABILITY 40 .1 50 .2 60 .2 70 .2 80 .2 90 .1 1.0
Transcribed Image Text:DEMAND DURING LEAD TIME PROBABILITY 40 .1 50 .2 60 .2 70 .2 80 .2 90 .1 1.0
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