The reorder point that should be established to ensure a 95% service level. Introduction: Reorder point: It is the level of inventory of an item which triggers an action to replenish the item since it falls below a certain level. Service level: The service level is the chance of demand that can be serviced before attaining the stockout levels.

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Answer 1

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Features Features Normal distribution is characterized by two parameters, mean (µ) and standard deviation (σ). When graphed, the mean represents the center of the bell curve and the graph is perfectly symmetric about the center. The mean, median, and mode are all equal for a normal distribution. The standard deviation measures the data's spread from the center. The higher the standard deviation, the more the data is spread out and the flatter the bell curve looks. Variance is another commonly used measure of the spread of the distribution and is equal to the square of the standard deviation.

Chapter 14, Problem 7P

a)

Summary Introduction

To calculate: The reorder point that should be established to ensure a 95% service level.

Introduction:

Reorder point:

It is the level of inventory of an item which triggers an action to replenish the item since it falls below a certain level.

Service level:

The service level is the chance of demand that can be serviced before attaining the stockout levels.

b)

Summary Introduction

To determine: The reorder point that should be established to ensure that not more than one stockout occurs in the year.

c)

Summary Introduction

To calculate: The average inventory, cycle inventory, and safety stock.

d)

Summary Introduction

To calculate: The number of inventory turnover times per year.

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Students have asked these similar questions

A material manager adopts the policy to place an order for a minimum quantity of 500 of a particular item in order to avail a discount of 10 percent. It was found from the company records that for last year 8 orders were placed each of size 200 Nos, ordering cost is ksh 500 per order. Inventory carrying charges at 40 per cent cost unit is ksh 400. (a) Show whether the purchase manager is justified in his decision (b) What is the effect of this decision on the company

A company that operates 300 days a year requires 928 units of product B annually. The supplier has a lead time of 4 days to deliver the goods. What is the re-order point?

is the percentage of the billed cost given by a vendor when a stipulated quantity is purchased. 1. Quantity Discount 2. Cash Discount 3. Vendor discount 4. List price discount

Answer 2

Question

Features Features Normal distribution is characterized by two parameters, mean (µ) and standard deviation (σ). When graphed, the mean represents the center of the bell curve and the graph is perfectly symmetric about the center. The mean, median, and mode are all equal for a normal distribution. The standard deviation measures the data's spread from the center. The higher the standard deviation, the more the data is spread out and the flatter the bell curve looks. Variance is another commonly used measure of the spread of the distribution and is equal to the square of the standard deviation.

Chapter 14, Problem 7P

a)

Summary Introduction

To calculate: The reorder point that should be established to ensure a 95% service level.

Introduction:

Reorder point:

It is the level of inventory of an item which triggers an action to replenish the item since it falls below a certain level.

Service level:

The service level is the chance of demand that can be serviced before attaining the stockout levels.

b)

Summary Introduction

To determine: The reorder point that should be established to ensure that not more than one stockout occurs in the year.

c)

Summary Introduction

To calculate: The average inventory, cycle inventory, and safety stock.

d)

Summary Introduction

To calculate: The number of inventory turnover times per year.

Expert Solution & Answer

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Check out a sample textbook solution

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Answer 3

Question

Features Features Normal distribution is characterized by two parameters, mean (µ) and standard deviation (σ). When graphed, the mean represents the center of the bell curve and the graph is perfectly symmetric about the center. The mean, median, and mode are all equal for a normal distribution. The standard deviation measures the data's spread from the center. The higher the standard deviation, the more the data is spread out and the flatter the bell curve looks. Variance is another commonly used measure of the spread of the distribution and is equal to the square of the standard deviation.

Chapter 14, Problem 7P

a)

Summary Introduction

To calculate: The reorder point that should be established to ensure a 95% service level.

Introduction:

Reorder point:

It is the level of inventory of an item which triggers an action to replenish the item since it falls below a certain level.

Service level:

The service level is the chance of demand that can be serviced before attaining the stockout levels.

b)

Summary Introduction

To determine: The reorder point that should be established to ensure that not more than one stockout occurs in the year.

c)

Summary Introduction

To calculate: The average inventory, cycle inventory, and safety stock.

d)

Summary Introduction

To calculate: The number of inventory turnover times per year.

Expert Solution & Answer

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Check out a sample textbook solution

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Answer 4

Question

Features Features Normal distribution is characterized by two parameters, mean (µ) and standard deviation (σ). When graphed, the mean represents the center of the bell curve and the graph is perfectly symmetric about the center. The mean, median, and mode are all equal for a normal distribution. The standard deviation measures the data's spread from the center. The higher the standard deviation, the more the data is spread out and the flatter the bell curve looks. Variance is another commonly used measure of the spread of the distribution and is equal to the square of the standard deviation.

Chapter 14, Problem 7P

a)

Summary Introduction

To calculate: The reorder point that should be established to ensure a 95% service level.

Introduction:

Reorder point:

It is the level of inventory of an item which triggers an action to replenish the item since it falls below a certain level.

Service level:

The service level is the chance of demand that can be serviced before attaining the stockout levels.

b)

Summary Introduction

To determine: The reorder point that should be established to ensure that not more than one stockout occurs in the year.

c)

Summary Introduction

To calculate: The average inventory, cycle inventory, and safety stock.

d)

Summary Introduction

To calculate: The number of inventory turnover times per year.

Expert Solution & Answer

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Answer 5

Chapter 14, Problem 7P

a)

Summary Introduction

To calculate: The reorder point that should be established to ensure a 95% service level.

Introduction:

Reorder point:

It is the level of inventory of an item which triggers an action to replenish the item since it falls below a certain level.

Service level:

The service level is the chance of demand that can be serviced before attaining the stockout levels.

b)

Summary Introduction

To determine: The reorder point that should be established to ensure that not more than one stockout occurs in the year.

c)

Summary Introduction

To calculate: The average inventory, cycle inventory, and safety stock.

d)

Summary Introduction

To calculate: The number of inventory turnover times per year.

Answer 6

Chapter 14, Problem 7P

a)

Summary Introduction

To calculate: The reorder point that should be established to ensure a 95% service level.

Introduction:

Reorder point:

It is the level of inventory of an item which triggers an action to replenish the item since it falls below a certain level.

Service level:

The service level is the chance of demand that can be serviced before attaining the stockout levels.

Answer 7

Chapter 14, Problem 7P

a)

Summary Introduction

To calculate: The reorder point that should be established to ensure a 95% service level.

Introduction:

Reorder point:

It is the level of inventory of an item which triggers an action to replenish the item since it falls below a certain level.

Service level:

The service level is the chance of demand that can be serviced before attaining the stockout levels.

Answer 8

b)

Summary Introduction

To determine: The reorder point that should be established to ensure that not more than one stockout occurs in the year.

Answer 9

b)

Summary Introduction

To determine: The reorder point that should be established to ensure that not more than one stockout occurs in the year.

Answer 10

c)

Summary Introduction

To calculate: The average inventory, cycle inventory, and safety stock.

Answer 11

c)

Summary Introduction

To calculate: The average inventory, cycle inventory, and safety stock.

Answer 12

d)

Summary Introduction

To calculate: The number of inventory turnover times per year.

Answer 13

d)

Summary Introduction

To calculate: The number of inventory turnover times per year.

Answer 14

Expert Solution & Answer

Answer 15

Expert Solution & Answer

Answer 16

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Answer 17

Ch. 14.S - eXcel Suppose that for problem 1 in the chapter,...Ch. 14.S - Prob. 2P Ch. 14.S - For problem 2 in the chapter, suppose the Grinell...Ch. 14.S - A producer of electronic parts wants to take...Ch. 14 - Identify the different types of inventories (raw...Ch. 14 - Why are stockout costs difficult to determine?...Ch. 14 - What is the difference between a requirements...Ch. 14 - Compare and contrast the management of finished...Ch. 14 - For a given service level, why does a P system...Ch. 14 - Under what circumstances might CPFR be useful, and...

Solution Summary: The author calculates the reorder point that should be established to ensure that not more than one stockout occurs in the year.

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To determine: The reorder point that should be established to ensure that not more than one stockout occurs in the year.

To calculate: The average inventory, cycle inventory, and safety stock.

To calculate: The number of inventory turnover times per year.

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