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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. b. C. d. standard deviation of 5. If Jasper cannot have stockouts in more than 10% of the time in any order, how much safety SKU J101 has a demand that is normally distributed during the lead time, with a mean of 450 units and stock should be maintained and at what reorder point? Given Mean=460 units Standard deviation=5 Confidence level =90% The formula to calculate safety stack is: S=ZX STD. dev. of lead timex avg demand. For 90% level zone z-score is S= x450 5 ८ units Calculate the safety stock and reorder point for SKU J102, assuming that its daily demand is normally distributed with a mean of 20, standard deviation of 2, lead time is 3 days, and must operate at 95% service level. Calculate the safety stock and reorder point for SKU J102, assuming its daily demand is constant at 25 units per day, lead time is normally with a mean of 5 days, standard deviation of 1 day and must operate at a 90% service level. Calculate the safety stock and reorder point for SKUJ104 assuming its daily demand is normally distributed with a mean of 18 units and a standard deviation of 2 days. The lead time is also normally distributed with a mor 7 days, standard deviation of 2 days and a service level of 95% 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. b. C. d. standard deviation of 5. If Jasper cannot have stockouts in more than 10% of the time in any order, how much safety SKU J101 has a demand that is normally distributed during the lead time, with a mean of 450 units and stock should be maintained and at what reorder point? Given Mean=460 units Standard deviation=5 Confidence level =90% The formula to calculate safety stack is: S=ZX STD. dev. of lead timex avg demand. For 90% level zone z-score is S= x450 5 ८ units Calculate the safety stock and reorder point for SKU J102, assuming that its daily demand is normally distributed with a mean of 20, standard deviation of 2, lead time is 3 days, and must operate at 95% service level. Calculate the safety stock and reorder point for SKU J102, assuming its daily demand is constant at 25 units per day, lead time is normally with a mean of 5 days, standard deviation of 1 day and must operate at a 90% service level. Calculate the safety stock and reorder point for SKUJ104 assuming its daily demand is normally distributed with a mean of 18 units and a standard deviation of 2 days. The lead time is also normally distributed with a mor 7 days, standard deviation of 2 days and a service level of 95% 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...
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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 450 units and standard deviation of 5. If Jasper 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? Given Mean=450 units Standard deviation-5 Confidence level 90% The formula to calculate safely stock is: S=ZX STD. dev. of lead timex avg demand. For 90% level zone z-score is S= S= x5 x 450 units b. Calculate the safety stock and reorder point for SKU J102, assuming that its daily demand is normally distributed with a mean of 20, standard deviation of 2, lead time is 3 days, and must operate at 95% service level. Calculate the safety stock and reorder point for SKU J102, assuming its daily demand is constant at 25 units per day, lead time is normally with a mean of 5 days, standard deviation of 1 day and must operate at a 90% service level. d. Calculate the safety stock and reorder point for SKU J104 assuming its daily demand is normally distributed with a mean of 18 units and a standard deviation of 2 days. The lead time is also normally distributed with a mean of 7 days, standard deviation of 2 days and a service level of 95% is required.
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 450 units and standard deviation of 5. If Jasper 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? Given Mean=450 units Standard deviation-5 Confidence level 90% The formula to calculate safely stock is: S=ZX STD. dev. of lead timex avg demand. For 90% level zone z-score is S= S= x5 x 450 units b. Calculate the safety stock and reorder point for SKU J102, assuming that its daily demand is normally distributed with a mean of 20, standard deviation of 2, lead time is 3 days, and must operate at 95% service level. Calculate the safety stock and reorder point for SKU J102, assuming its daily demand is constant at 25 units per day, lead time is normally with a mean of 5 days, standard deviation of 1 day and must operate at a 90% service level. d. Calculate the safety stock and reorder point for SKU J104 assuming its daily demand is normally distributed with a mean of 18 units and a standard deviation of 2 days. The lead time is also normally distributed with a mean of 7 days, standard deviation of 2 days and a service level of 95% is required.
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