item SKU A3378 has a demand that is normally distributed during the lead time, with a mean of a. 400 units and standard deviation of 12. If Hinsdale cannot have stockouts in more than 10% of the time in any order, how much safety stock should be maintained and at what reorder point? b. s) Calculate Hinsdale's safety stock and reorder point for three other SKUS under the following conditions of demand and lead time: SKU F5402: daily demand is normally distributed with a mean of 20, standard deviation of 5, lead time is 5 days, and must operate at a 95% service level. SKU B7319: daily demand is constant at 28 units per day, lead time is normally with a mean of 7 days and standard deviation of 4 days and must operate at a 97% service level.
item SKU A3378 has a demand that is normally distributed during the lead time, with a mean of a. 400 units and standard deviation of 12. If Hinsdale cannot have stockouts in more than 10% of the time in any order, how much safety stock should be maintained and at what reorder point? b. s) Calculate Hinsdale's safety stock and reorder point for three other SKUS under the following conditions of demand and lead time: SKU F5402: daily demand is normally distributed with a mean of 20, standard deviation of 5, lead time is 5 days, and must operate at a 95% service level. SKU B7319: daily demand is constant at 28 units per day, lead time is normally with a mean of 7 days and standard deviation of 4 days and must operate at a 97% service level.
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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A & B Please
![**Problem #4 – Hinsdale Company – Modified, from textbook page #205.**
a. [REDACTED] item SKU A3378 has a demand that is normally distributed during the lead time, with a mean of 400 units and standard deviation of 12. If Hinsdale cannot have stockouts in more than 10% of the time in any order, how much safety stock should be maintained and what reorder point?
b. [REDACTED] Calculate Hinsdale’s safety stock and reorder point for three other SKUs under the following conditions of demand and lead time:
- **SKU F5402**: Daily demand is normally distributed with a mean of 20, standard deviation of 5, lead time is 5 days, and must operate at a 95% service level.
- **SKU B7319**: Daily demand is constant at 28 units per day, lead time is normally with a mean of 7 days and standard deviation of 4 days and must operate at a 97% service level.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fdd3c27d4-b808-4d72-a714-fa9a685b9143%2F85b16c40-ca64-440d-9e13-7ccc725ee160%2F34xe39b_processed.jpeg&w=3840&q=75)
Transcribed Image Text:**Problem #4 – Hinsdale Company – Modified, from textbook page #205.**
a. [REDACTED] item SKU A3378 has a demand that is normally distributed during the lead time, with a mean of 400 units and standard deviation of 12. If Hinsdale cannot have stockouts in more than 10% of the time in any order, how much safety stock should be maintained and what reorder point?
b. [REDACTED] Calculate Hinsdale’s safety stock and reorder point for three other SKUs under the following conditions of demand and lead time:
- **SKU F5402**: Daily demand is normally distributed with a mean of 20, standard deviation of 5, lead time is 5 days, and must operate at a 95% service level.
- **SKU B7319**: Daily demand is constant at 28 units per day, lead time is normally with a mean of 7 days and standard deviation of 4 days and must operate at a 97% service level.
Transcribed Image Text:Calculate Hinsdale’s safety stock and reorder point for three other SKUs under the following conditions of demand and lead time:
- **SKU F5402**: Daily demand is normally distributed with a mean of 20, standard deviation of 5, lead time is 5 days, and must operate at a 95% service level.
- **SKU B7319**: Daily demand is constant at 28 units per day, lead time is normally distributed with a mean of 7 days and standard deviation of 4 days, and must operate at a 97% service level.
- **SKU F9004**: Daily demand is normally distributed with a mean of 22 units and a standard deviation of 5 units. The lead time is also normally distributed with a mean of 6 days, standard deviation of 3 days, and a service level of 90% is required.
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