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 normaly 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.
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 normaly 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.
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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
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.
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