EP PRIN.OF OPERATIONS MGMT.-MYOMLAB
10th Edition
ISBN: 9780134183848
Author: HEIZER
Publisher: PEARSON CO
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Chapter 12, Problem 48P
Gainesville Cigar stocks Cuban agars that have variable lead times because of the difficulty in importing the product: lead time is
a) For a 90% service level, what is the ROP?
b) What is the ROP for a 95% service level?
c) Explain what these two service levels mean. Which is preferable?
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Students have asked these similar questions
Harvey Gold, orders an unusual olive from the
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Assume 4 weeks each month and 90% service
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Table of Z-values for normal distribution:
Service level
Z-value
90%
1.29
91% 92% 93% 94% | 95% 96% 97% 98% 99%
1.65
1.34
1.41
1.48
1.56
1.75
1.88
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Suppose that we would like to determine Reorder Point for the product. From the historical data
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mean of 200 and standard deviation of 10 products. The maximum stock out risk is 10%. Answer
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b) Find the reorder point.
c) Find the reorder point if the stock out risk decreases to 1%. Comment on the result.
Chapter 12 Solutions
EP PRIN.OF OPERATIONS MGMT.-MYOMLAB
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