Operations Management (McGraw-Hill Series in Operations and Decision Sciences)
12th Edition
ISBN: 9780078024108
Author: William J Stevenson
Publisher: McGraw-Hill Education
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Chapter 13, Problem 20P
Given this information:
Lead-time demand = 600 pounds
Standard deviation of lead time demand = 52 pounds (Assume normality.)
Acceptable stockout risk during lead time = 4 percent
a. What amount of safety stock is appropriate?
b. When should this item be reordered?
c. What risk of stockout would result from a decision not to have any safety stock?
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Given this information:Lead-time demand 600 poundsStandard deviation of lead time demand 52 pounds (Assume normality.)Acceptable stockout risk during lead time 4 percenta. What amount of safety stock is appropriate?b. When should this item be reordered?c. What risk of stockout would result from a decision not to have any safety stock?
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Please show work so I can understand it.
Given this information:
•Expected demand during lead time = 800 units
• Standard deviation of lead time demand = 40 units
Assuming that lead time demand is distributed normally. The risk of stockout is 5 percent during lead time
(a) What amount of safety stock is appropriate?
(b) Calculate ROP
Chapter 13 Solutions
Operations Management (McGraw-Hill Series in Operations and Decision Sciences)
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