School stocks special printers that have variable lea bêcause of the difficulty of importing the product. Lead time is normally distributed with an average of 8 weeks and a standard deviation of 3 weeks. Demand cannot be predicted following a normal distribution, it has a mean of 300 printers per week and a standard deviation of 75 printers.
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Question:
1. For a 90% service level, what is the ROP? z=1.28
2. For a 95% service level, what is the safety stock? z=1.65
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- weekly demand for hamleys (a famous toy brand) at a toy store is normally disrtibuted with a mean of 250 and a standrd devaiton of 150.Ther toy store is opened 7 days a week.The toy store owner continoulsy monitors the inventory .Hamleys takes 2 weeks to fill an order with a standard devaiton of 4 days. 1] how much inventory should the sotre carry at the reorder point. 2] how much inventory would that be at the reorder point if the cycle service was increased to 98%?Dunstreet’s Department Store would like to develop an inventory ordering policy of a 95 percent probability of not stocking out. To illustrate your recommended procedure, use as an example the ordering policy for white percale sheets. Demand for white percale sheets is 5,000 per year. The store is open 365 days per year. Every two weeks (14 days) inventory is counted and a new order is placed. It takes 10 days for the sheets to be delivered. Standard deviation of demand for the sheets is five per day. There are currently 150 sheets on hand. How many sheets should you order?Dunstreet's Department Store would like to develop an inventory ordering policy of a 90 percent probability of not stocking out. To illustrate your recommended procedure, use as an example the ordering policy for white percale sheets.Demand for white percale sheets is 3,400 per year. The store is open 365 days per year. Every two weeks (14 days) inventory is counted and a new order is placed. It takes 12 days for the sheets to be delivered. Standard deviation of demand for the sheets is five per day. There are currently 170 sheets on hand. How many sheets should you order?
- In a two-bin inventory system, the demand for three-inch lag bolts during the 2-week lead time is normally distributed, with an average of 53 units per week. The standard deviation of weekly demand is 5 units. a. What is the probability of demand exceeding the reorder point when the normal level in the second bin is set at 130 units? b. What is the probability of demand exceeding the 130 units in the second bin if it takes 3 weeks to receive a replenishment order?Chicago's Hard Rock Hotel distributes a mean of 900 bath towels per day to guests at the pool and in their rooms. This demand is normally distributed with a standard deviation of 100 towels per day, based on occupancy. The laundry firm that has the linen contract requires a 2-day lead time. The hotel expects a 95% service level to satisfy high guest expectations. Refer to the standard normal table for z-values. a) What is the reorder point? b) What is the safety stock? towels (round your response to the nearest whole number). towels (round your response to the nearest whole number). Z 0.38 0.50 0.67 0.84 1.04 1.28 1.41 1.56 1.65 1.75 2.06 2.33 Pr(Z) 65 69 75 80 85 90 92 94 95 96 98 99As the Manager of Branson’s Department Store, you are responsible for ensuring that reorder quantities for the various items have been correctly established. You decide to test one item and choose product Z. A continuous review inventory policy has been used, so you examine this as well as other records and come up with the following data: Cost per unit $35 Holding cost 20 percent of unit cost Average daily demand 10 units Ordering cost $30 per order Standard deviation of daily demand 3 units Delivery lead time 4 days Because customers generally do not wait but go elsewhere, you decide on a service probability of 90 percent. Assume that Branson’s Department Store operates 320 days per year. [What is the annual demand (D)? Determine the optimal order quantity, Q*. Determine the reorder point (R) if demand is constant. Determine the reorder point (R) if demand is varies.
- SAFETY STOCK WITH PROBABILISTIC DEMAND Memphis Regional Hospital stocks a “code blue” resuscitation kit that has a normally distributeddemand during the reorder period. The mean (average) demand during the reorder period is 350 kits,and the standard deviation is 10 kits. The hospital administrator wants to follow a policy that results instockouts only 5% of the time.(a) What is the appropriate value of Z ? (b) How much safety stock should the hospital maintain?(c) What reorder point should be used?APPROACH c The hospital determines how much inventory is needed to meet the demand 95% of thetime. The figure in this example may help you visualize the approach. The data are as follows:m = Mean demand = 350 kitssdLT = Standard deviation of demand during lead time = 10 kitsZ = Number of standard normal deviationsA sporting goods company has a distribution center that maintains inventory of fishing rods. The fishing rods have the following demand, lead time, and cost characteristics: Average demand = 130 units per day, with a standard deviation of 12 units Average lead time = 12 days with a standard deviation of 1 day 250 days per year in the business year Unit cost = $28 Desired service level = 97.5% Ordering cost $53 Inventory carrying cost = 25% a. What is the standard deviation of demand during lead time? b. How many fishing rods should the distribution center carry to provide the desired service level? c. What is the EOQ? d. What is the average cycle stock?H & K Electronic Warehouse sells a 12-pack of AAA batteries, and this is a very popular item. Demand for this is normally distributed, with an average of 50 packs per day and a standard deviation of 16. The average delivery time is 5 days, with a standard deviation of 2 days. Delivery time has been found to be normally distributed. A 96% service level is desired. What is the standard deviation of demand during the lead time? How much safety stock should be carried, and what should be the reorder point
- Dalia, the office manager of a desktop publishing outfit, stocks replacement toner cartridges for laser printers. Demand for cartridges is approximately 30 per year and is quite variable (Le., can be represented using the Poisson distribution). Cartridges cost $100 each and require three weeks to obtain from the vendor. Dalia uses a (Q, r) approach to control stock levels (a). If Dalia wants to restrict replenishment orders to twice per year on average, what batch size Q should she use? If she wants to ensure a service level (i.e., probability of having the cartridge in stock when 2 out of 2 needed) of at least 98 percent, what reorder point r should she use? (Hint: Use Table 2.6.(b). If Dalia is willing to increase the number of replenishment orders per year to six, how do Q and r change? Explain the difference in r.Daily demand for product sample kits is normally distributed with a mean of 35 units and a standard deviation of 4. Supply is virtually certain with a lead time of 9 days. The cost of placing an order is $20, and annual carrying costs for one kit is 25 percent. The price of one kit is $12.50. Assume a year has 365 days.If a 99% service level is desired, what is average inventory on hand? If demand had no variation, what would the reorder point be?K Chicago's Hard Rock Hotel distributes a mean of 1,100 bath towels per day to guests at the pool and in their rooms This demand is normally distributed with a standard deviation of 95 towels per day based on occupancy The laundry firm that has the linen contract requires a 3-day lead time. The hotel expects a 99% service level to satisfy high guest expectations. Refer to the standard normal table for z-values. a) What is the reorder point? 3683 towels (round your response to the nearest whole number) towels (round your response to the nearest whole number). b) What is the safety stock?