Don't use Ai Standard Deviation is not the best methodto calculate how much product to keep instock to avoid stockouts.Select one:TrueFalse

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Practical Management Science

6th Edition

ISBN:9781337406659

Author:WINSTON, Wayne L.

Publisher:WINSTON, Wayne L.

Chapter2: Introduction To Spreadsheet Modeling

Section: Chapter Questions

Problem 33P: Assume the demand for a companys drug Wozac during the current year is 50,000, and assume demand...

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A service garage uses 204 boxes of cleaning cloths a year. The boxes cost $12 each. The cost to place one order is $15, and the cost to hold one box in inventory for a year is $2.40. The EOQ is
Weekly demand for Lego at a Wal-Mart store is normally distributed with a mean of 2,500 boxes and a standard deviation of 500. Demand is assumed to be stationary and the mean demand is used as forecast. Each order costs Wal-Mart $145 and holding cost per box per year is estimated at $1.5. Lead time is 2 weeks and the store manager has decided to review inventory every 4 weeks. (Assume a periodic review policy) a. What is safety stock requirement for a service level of 90%? b. What is the order-up-to level? c. What is the total annual variable cost?
8
An airline company offers four fairs as shown in the table below. The demand distribution for each fare is normal with mean and standard deviation as given in the table. Find an estimate of the protection levels for the classes using the heuristic EMSR-a. Note:- Do not provide handwritten solution. Maintain accuracy and quality in your answer. Take care of plagiarism. Answer completely. You will get up vote for sure.
Aboloway Company stocks a part that has a daily demand represented by the empirical distribution (shown in the table below). When restocking this part, the average lead time from the supplier is 3 days with a standard deviation of 0.5 days. The plant manager wants to determine how much safety stock to maintain for this part to ensure that stock-outs will not be incurred in more than 5.5% of the order cycles. Daily demand (d) in units Frequency 5 10 10 35 15 65 20 32 25 8 Total Observations = 150 3a. Find the mean and standard deviation for demand. 3b. Based on the information in problems 3 and 3a, what is the mean and standard deviation of demand during the lead time? 3c. Based on the information in problems 3, 3a, and 3b, how much safety stock should the plant manager maintain to ensure that stock-out will not be incurred in more than 5.5% of the order cycles?
Give typed explanation
Q: A hardware company stocks nuts and bolts and orders them from a local supplier once every 2 weeks (10 working days). Lead time is 2 days. The company has determined that the average demand for 1⁄2 inch bolts is 150 per week (5 working days), and it wants to keep a safety stock of 3 days’ supply on hand. An order is to be placed this week, and the stock on hand is 130 bolts.a. What is the target level?b. How many 1⁄2 inch bolts should be ordered this time?
Chris usually sells 120 copies of newspaper each day and believe that sale are normally distributed, with a standard deviation of 15 papers. He pays 70 cents for each paper, which sells $1.25. For each unsold paper, he receives 30-cent credit. a) determine how many papers he should order each day b) calculate the stockout risk for that quantity.
A warehouse manager at Mary Beth Marrs Corp. needs to simulate the demand placed on a product that does not fit standard models. The concept being measured is "demand during lead time," where both lead time and daily demand are variable. The historical record for this product, along with the cumulative distribution, appear in the table. Demand During Lead Time Cumulaive Probability Probability 120 0.01 0.01 140 0.12 0.13 160 0.35 0.48 180 0.20 0.68 200 0.04 0.72 220 0.08 0.80 240 0.20 1.00 The following random numbers have been generated: 9, 78, 40, 41, and 99. (Note: Assume the random number interval begins at 01 and ends at 00.) Based on the given probabilty distribution, for the given random number the demand during the lead time is: Random Number 9 78 40 41 99 Demand The average demand during the lead time is (enter your response as an integer). The total demand during the lead time based on the five simulations is (enter your response as an integer).
15) JBs needs to determine what quantity of a new tennis racquet to order for the upcoming summer season. They sell the racquet for $110 and procure it from their supplier for $70. Any leftovers will be marked down 60% and are expected to all sell at that price. Anticipated demand is modeled with a normal distribution where the mean is 120 and the standard deviation is 25. How many racquets should JBs order if they want to meet a 95% target fill rate? A) 130 C) 162 B) 127 D) 149
The weekly demand of a slow-moving product has the probability mass function shown to the right. Find the expected value, variance, and standard deviation of weekly demand. The expected value of weekly demand is 1 (Type an integer or a decimal. Do not round.) The variance of weekly demand is 6. (Type an integer or a decimal. Do not round.) The standard deviation of weekly demand is (Round to three decimal places as needed.) Demand, x Probability, f(x) 0.3 0.2 IT 0.4 0.1 0.0 4 or more
Stocks have high levels of demand at certain times of the year: Select one: a. Cycle stocks b. Safety Stocks c. Seasonal Stocks d. Buffer stock

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Standard Deviation is not the best method to calculate how much product to keep in stock to avoid stockouts. Select one: True False