EBK PRINCIPLES OF OPERATIONS MANAGEMENT
10th Edition
ISBN: 8220102744059
Author: HEIZER
Publisher: PEARSON
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Textbook Question
Chapter 12, Problem 12P
Lead time for one of your fastest-moving products is 21 days. Demand during this period averages 100 units per day.
a) What would be an appropriate reorder point?
b) How does your answer change if demand during lead time doubles?
c) How does your answer change if demand during lead time drops in half?
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Demand for a product is relatively constant at 5 units per day. Lead time for this product is normally distributed with a mean of 20 days and a standard deviation of 4 days.
(a) What reorder point provides an 80 percent service level?
(b) What reorder point provides a 90 percent service level?
(c) If the lead time standard deviation can be reduced from 4 days to 1, what reorder point now provides 90 percent service? How much is safety stock reduced by this change?
During the last 5 weeks, demands for a certain SKU at a retailer were 7 units (5 weeks ago), 4 units, 4 units, 4 units, and 5 units (last week). The retailer uses a period review model with order-up-to level 71 units, a review period of 2 weeks, and the lead time is 11 weeks. It is time to order. How much should the retailer order?
Chapter 12 Solutions
EBK PRINCIPLES OF OPERATIONS MANAGEMENT
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