For an item with an average daily demand of 70units with a standard deviation of 4 units, anaverage lead time of 8 days with a standarddeviation of 2 days, and a 99.2% service level, thereorder point is about:O 898O 842O 560O 954O 1191

Given data: Average daily demand (d) = 70 unitsThe standard deviation of demand (σ) =4 units…

Answered: For an item with an average daily…

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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The demand for a particular part called SKU 005 is 1,500 units a year. The cost of one SKU 005 is $64.00. It costs $60.00 to place an order SKU 005, and the user of SKU 005 has a per year inventory carrying cost of 25% of unit cost. Assume that there are 250 working days in the year where SKU 005 is used. Once the purchasing manager for SKU 005 places an order, it always takes the vendor 5 working days to deliver that order. What should the purchasing manager’s reorder point be? ) A. 12 ОВ. 30 Ос. 36 O D. 24 O E. 5
The demand for a particular part called SKU 005 is 1,200 units a year. The cost of one SKU 005 is $40.00. It costs $60.00 to place an order SKU 005, and the user of SKU 005 has a per year inventory carrying cost of 25% of unit cost. Assume that there are 250 working days in the year where SKU 005 is used. Once the purchasing manager for SKU 005 places an order, it always takes the vendor 5 working days to deliver that order. What should the purchasing manager's reorder point be? O A. 24 O B. 36 O C. 30 O D. 5 O E. 12
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For an item with an average daily demand of 70 units with a standard deviation of 4 units, an average lead time of 8 days with a standard deviation of 2 days, and a 99.2% service level, the reorder point is about: O 898 O 842 O 560 O 954 O 1191