Operations Management, Binder Ready Version: An Integrated Approach
Operations Management, Binder Ready Version: An Integrated Approach
6th Edition
ISBN: 9781118952610
Author: R. Dan Reid, Nada R. Sanders
Publisher: WILEY
Question
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Chapter 12, Problem 27P

(a)

Summary Introduction

Interpretation:

Thechange in the procedure, if the cycle service level needed to be 98% .

Concept Introduction:

Safety stock can be determined using the formula:

  safetystock=z(σRP+L)

(b)

Summary Introduction

Interpretation:

The impact of changing the review period from every Friday to every other Friday assuming the cycle service level is 94%.

Concept Introduction:

Safety stock level can be determined using the formula:

  safetystock=z(σRP+L)

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