
Practical Management Science
6th Edition
ISBN: 9781337406659
Author: WINSTON, Wayne L.
Publisher: Cengage,
expand_more
expand_more
format_list_bulleted
Question

Transcribed Image Text:A company begins a review of ordering policies for its continuous review system by checking the current policies for a sample of SKUS Following are the characteristics of one tem
Demand (D)=85 units/week (Assume 52 weeks per year)
Ordening and setup cost (S) $75/order
Holding cost (H)-$16/und/year
Lead time (L) 5 week(s)
Standard deviation of weekly demand 22 units
Cycle-service lovel-90 percent
>EOQ-207 units
Using the above information, develop the best policies for a periodic review system Refer to the standard normal table for z-values
a. What value of P gives the same approximate number of orders per year as the EOQ? weeks (Enter your response rounded to the nearest whole number)
b. To provide a 98 percent cycle-service level, the average safety stock is
To provide a 98 percent cycle-service level, the target inventory level is
unts (Enter your response rounded to the nearest whole number)
units (Enter your response rounded to the nearest whole number)
Expert Solution

This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
Step by stepSolved in 3 steps with 3 images

Knowledge Booster
Similar questions
- Increases in lead time ________reorder points. Group of answer choices Decrease Have no effect on Increasearrow_forwardA company replaces its SKU’s at a rate of 25 pcs a day. In the past this qty tended to vary normally & have a std dev of 3 units per day. SKU’s are ordered from XYZ Supplier. LT is normally distributed with an average of 10 days & std dev of 2 days. What ROP should be used to achieve a service level of 95%.arrow_forwardWhat is the Z value corresponding to a 98% service level? O 2.33 1.645 O 1.96 02.055arrow_forward
- Determine the optimum preventive maintenance frequency for each of the pieces of equipment if breakdown time is normally distributed: (Round "Probability Ratio" to 4 decimal places, and all other answers to 2 decimal places. Negative values should be indicated by a minus sign.) Use Table. Equipment. A201 B400 C850 Equipment A201 B400 CB50 Equipment Average Time (days) between Breakdowns A201 B400 C850 20 30 45 Preventive Maintenance Cost Click here for the Excel Data File: $330 $230 $580 Probability Ratio Standard Deviation 3 Breakdown Cont $2,230 $3,530 $4,825 Interval (days)arrow_forwardWhat happens to availability when the MTTR (time between failures) approaches zero? Can we provide an accurate description of this situation?arrow_forwardWhich item would be considered an order winner in an automobile developed for high-end users? Voice-activated music system Compact disc players Full-sized spare tire Air bagsarrow_forward
- The Northridge Company tends to keep the inventory low. At the same time, it is important to respond to demand quickly, since a customer who wants a product K is very likely to get one from a competitor if Northridge Company doesn’t have one available immediately. Northridge Company’s current policy to produce the product K is to produce 100 per week, which is the average demand. Even this is a problem, as the production manager has pointed out, since the equipment is also used for other products and the lot size of 300 would be much more efficient. He said he is currently set up the production for product K for the next week and states that he has capacity available to produce 300 at a time next week. The following lists the forecasts and actual customer orders for the next 12 weeks. Week 1 2 3 4 5 6 7 8 9 10 11 12 Forecast 90 120 110 80 85 95 100 110 90 90 100 110 Customer Orders 105 97 93 72 98 72 53 21…arrow_forwardExamine the possible cash-flow issues and operational improvement possibilities of at least two KPIs from the middle of the revenue-cycle dashboard of the chosen organization. Charges are captured for services provided. 91%(Color: Yellow)92%(Color: Yellow)85%(Color: Yellow)86%(Color: Yellow)Clinical documentation is completed within 5 days of patient visit/discharge.93%(Color: Green)96%(Color: Green)81%(Color: Yellow)81%(Color: Yellow)Area of the CycleKey Performance Indicator (KPI)Target: 100%January - MarchActualApril - JuneActualJuly - SeptemberActualOctober -DecemberActualMembers of the medical staff are notified within 2 days of any delinquent (greater than 5 days) clinical documentation in patient charts.100%(Color: Green)98%(Color: Green)99%(Color: Green)100%(Color: Green)Coding is completed within 5 days of clinical documentation completion in the medical record.100%(Color: Green)70%(Color: Red)78%(Color: Red)76%(arrow_forward18 If the standard deviation of demand is six per week, demand is 50 per week, and the desired service level is 95%, approximately what is the statistical safety stock? Select one: a. 16 units b. 64 units c. 10 units d. Cannot be determined without lead time data. e. 8 unitsarrow_forward
- What happens to availability when the MTTR (time between failures) approaches zero? Is there a way to convey this circumstance correctly?arrow_forwardInternal control problems in the revenue cyclearrow_forwardSteadily increasing or steadily decreasing orders are typical of a _______ pattern of demand. Group of answer choices Cyclic Level or horizontal Seasonal Trendarrow_forward
arrow_back_ios
SEE MORE QUESTIONS
arrow_forward_ios
Recommended textbooks for you
- Practical Management ScienceOperations ManagementISBN:9781337406659Author:WINSTON, Wayne L.Publisher:Cengage,Operations ManagementOperations ManagementISBN:9781259667473Author:William J StevensonPublisher:McGraw-Hill EducationOperations and Supply Chain Management (Mcgraw-hi...Operations ManagementISBN:9781259666100Author:F. Robert Jacobs, Richard B ChasePublisher:McGraw-Hill Education
- Purchasing and Supply Chain ManagementOperations ManagementISBN:9781285869681Author:Robert M. Monczka, Robert B. Handfield, Larry C. Giunipero, James L. PattersonPublisher:Cengage LearningProduction and Operations Analysis, Seventh Editi...Operations ManagementISBN:9781478623069Author:Steven Nahmias, Tava Lennon OlsenPublisher:Waveland Press, Inc.

Practical Management Science
Operations Management
ISBN:9781337406659
Author:WINSTON, Wayne L.
Publisher:Cengage,

Operations Management
Operations Management
ISBN:9781259667473
Author:William J Stevenson
Publisher:McGraw-Hill Education

Operations and Supply Chain Management (Mcgraw-hi...
Operations Management
ISBN:9781259666100
Author:F. Robert Jacobs, Richard B Chase
Publisher:McGraw-Hill Education


Purchasing and Supply Chain Management
Operations Management
ISBN:9781285869681
Author:Robert M. Monczka, Robert B. Handfield, Larry C. Giunipero, James L. Patterson
Publisher:Cengage Learning

Production and Operations Analysis, Seventh Editi...
Operations Management
ISBN:9781478623069
Author:Steven Nahmias, Tava Lennon Olsen
Publisher:Waveland Press, Inc.