Operations Management
11th Edition
ISBN: 9780132921145
Author: Jay Heizer
Publisher: PEARSON
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Chapter F, Problem 7P
Question:
• F.7 A warehouse manager at Mary Beth Marrs Corp. needs to simulate the demand placed on a product that does not fit standard models. The concept being measured is “demand during lead time,” where both lead time and daily demand are variable. The historical record for this product, along with the cumulative distribution, appear in the table. Random numbers have been generated to simulate the next 5 order cycles; they are 91, 45, 37, 65, and 51. What are the five demand values? What is their average?
| DEMAND DURING LEAD TIME | PROBABILITY | CUMULATIVE PROBABILITY | |||
| 100 | .01 | .01 | |||
| 120 | .15 | .16 | |||
| 140 | .30 | .46 | |||
| 160 | .15 | .61 | |||
| 180 | .04 | .65 | |||
| 200 | .10 | .75 | |||
| 220 | .25 | 1.00 | |||
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Students have asked these similar questions
question 6
In a Q system, the demand rate for strawberry ice cream is normally distributed, with an average of 295pints per week.The lead time is 8 weeks. The standard deviation of weekly demand is
10 pints. Refer to the standard normal table1
for z-values.
a. The standard deviation of demand during the 8-weeklead time is ______pints. (Enter your response rounded to the nearest whole number.)
b. The average demand during the 8-week lead time is_____ pints. (Enter your response as an integer.)
c. The reorder point that results in a cycle-service level of 92percent is _______ pints. (Enter your response rounded to the nearest whole number.)
1: Data Table
The table below shows the total area under the normal curve for a point that is Z standard deviations to the right of the mean.
Z
0.00
0.01
0.02
0.03
0.04
0.05
0.06
0.07
0.08
0.09
0.0
0.5000
0.5040
0.5080
0.5120
0.5160
0.5199
0.5239
0.5279
0.5319
0.5359
0.1
0.5398…
Question 14
Rex manufacturing purchases a printed circuit board for use in its automatic, computerized, robot
bartender. The manufacturing facility has placed the following monthly demands on purchased
goods inventory during the past year.
Month 1 2 3 4 5 6 7 8 9 10 11 12
Demand 205 193 197 220 202 226 179 197 186 202 179 214
This demand schedule can be assumed to be random, to follow a normal distribution, and to be
representative of what will occur in the future. Rex estimates that a fixed cost of $300 is
incurred each time an order is placed for the boards, and that the inventory holding cost is about
20% per year of the value of inventory. Each board has an estimated value of $192 at the point
of storage. The lead time on purchase orders is (1/5) month.
Part A: What is the EOQ?
Part B: What is the safety stock required to assure the management that the chance of a stock out
in a cycle is no more than 1%?
Part C: What is the reorder level?
QUESTION 26
B
The slope of the line labeled "A" in the diagram is:
order rate.
rate of inventory demand.
production rate.
O production rate minus rate of inventory demand.
E
Chapter F Solutions
Operations Management
Ch. F - Question: 1 State the seven steps, beginning with...Ch. F - Question: 2. List the advantages of simulation.Ch. F - Prob. 3DQCh. F - Question: 4. Explain the difference between...Ch. F - Question: 5. What is the role of random numbers in...Ch. F - Prob. 6DQCh. F - Question: 7. What is Monte Carlo simulation? What...Ch. F - Question: 8. List six ways that simulation can be...Ch. F - Question: 9. Why is simulation such a widely used...Ch. F - Prob. 10DQ
Ch. F - Prob. 11DQCh. F - Prob. 12DQCh. F - Prob. 13DQCh. F - Prob. 1PCh. F - Prob. 2PCh. F - Prob. 3PCh. F - Prob. 4PCh. F - Question F.5 Arnold Palmer Hospital is studying...Ch. F - Prob. 6PCh. F - Question: F.7 A warehouse manager at Mary Beth...Ch. F - Prob. 8PCh. F - Prob. 9PCh. F - Question: F.10 The number of cars arriving at...Ch. F - Prob. 11PCh. F - Prob. 12PCh. F - Prob. 13PCh. F - Question: F.14 Refer to the data in Solved...Ch. F - Question: F.15 Connecticut Tanning has two...Ch. F - Prob. 16PCh. F - Prob. 17PCh. F - Prob. 18PCh. F - Prob. 1CSCh. F - Prob. 2CS
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