Given this information:Expected demand during lead time = 345 unitsStandard deviation of lead time demand = 44 unitsUse Table.Determine each of the following, assuming that lead time demand is distributed normally:a. The ROP that will provide a risk of stockout of 1 percent during lead time. (Round your answer to the nearest whole number.)ROPunitsb. The safety stock needed to attain a 1 percent risk of stockout during lead time. (Do not round intermediate calculations. Roundyour answer to the nearest whole number.)Safety stockunits .00.01.02.03.04.05.06.07.08.09.0.5000.5040.50805120.5160.5199.52395279.5319.5359.15398.5438.5478.5517.5557.5596.56365675.5714.5753.2.5793.5832.58715910.5948.5987.6026.6064.6103.6141.3.6179.6217.6255.6293.6331.6368.6406.6443.6480.65174.6554.6591.6628.6664.6700.67366772.6808.6844.6879.5.6915.6950.69857019.7054.7088.7123.7157.7190.7224.6.7257.7291.73247357.7389.7422.74547486.7517.7549.77580.7611.76427673.7703.7734.77647794.7823.7852.87881.7910.79397967.7995.80238051.8078.8106.8133.9.8159.8186.8212.8238.82648289.8315.83408365.83891.08413.8438.8461.8485.8508.85318554.85778599.86211.18643.8665.8686.87088729.8749.8770.8790.8810.88301.2.8849.8869.888889078925.8944.8962.89808997.90151.3.9032.9049.9066.9082.9099.9115.9131.9147.9162.91771.4.9192.9207.9222.9236.9251.9265.9279.9292.9306.9319.9441.95451.5.9332.9345.9357.9370.9382.9394.9406.9418.94291.69452.9463.9474.9484.9495.9505.9515.9525.95351.7.9554.9564.9573.95829591.9599.9608.9616.9625.96331.8.9641.9649.9656.9664.9671.9678.9686.9693.9699.97061.9.9713.9719.9726.9732.9738.9744.9750.9756.9761.97672.0.9772.9778.9783.9788.9793.9798.9803.9808.9812.98172.1.9821.9826.9830.9834.9838.9842.9846.9850.9854.98572.2.9861.9864.9868.9871.9875.9878.9881.9884.9887.98902.3.9893.9896.9898.9901.9904.9906.9909.9911.9913.99162.4.9918.9920.9922.9925.9927.9929.9931.9932.9934.99362.5.9938.9940.9941.9943.9945.9946.9948.9949.9951.99522.6.9953.9955.9956.9957.9959.9960.9961.9962.9963.99642.7.9965.9966.9967.9968.9969.9970.9971.9972.9973.99742.8.9974.9975.9976.9977.9977.9978.9979.9979.9980.99812.9.9981.9982.9982.9983.9984.9984.9985.9985.9986.99863.0.9987.9987.9987.9988.9988.9989.9989.9989.9990.99903.1.9990.9991.9991.9991.9992.9992.9992.9992.9993.99933.2.9993.9993.9994.9994.9994.9994.9994.9995.9995.99953.3.9995.9995.9995.9996.9996.9996.9996.9996.9996.99973.4.9997.99979997.9997.9997.9997.9997.9997.9997.9998

Given this information: Expected demand during lead time = 345 units Standard deviation of lead time demand = 44 units Use Table. Determine each of the following, assuming that lead time demand is distributed normally: a. The ROP that will provide a risk of stockout of 1 percent during lead time. (Round your answer to the nearest whole number.) ROP units b. The safety stock needed to attain a 1 percent risk of stockout during lead time (Do not round intermediate calculations. Round

Given this information: Expected demand during lead time = 345 units Standard deviation of lead time demand = 44 units Use Table. Determine each of the following, assuming that lead time demand is distributed normally: a. The ROP that will provide a risk of stockout of 1 percent during lead time. (Round your answer to the nearest whole number.) ROP units b. The safety stock needed to attain a 1 percent risk of stockout during lead time (Do not round intermediate calculations. Round

Practical Management Science

6th Edition

ISBN:9781337406659

Author:WINSTON, Wayne L.

Publisher:WINSTON, Wayne L.

Chapter2: Introduction To Spreadsheet Modeling

Section: Chapter Questions

Problem 20P: Julie James is opening a lemonade stand. She believes the fixed cost per week of running the stand...

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XYZ Company must order tires from its warehouse. It costs $10400 to place an order and to review the inventory level. Annual tire sales are normally distributed with mean 18000 and variance 4,000,000. It costs $8 per year to hold a tire in inventory, and each order arrives two weeks after being placed. The Company uses periodic review (R, S) policy. What is the review interval R (in years), estimated using EOQ.? Select one: a. 0.3801 b. 0.19 c. 0.2687 d. 1.075 e. 0.1267
XYZ Company must order tires from its warehouse. It costs $10550 to place an order and to review the inventory level. Annual tire sales are normally distributed with mean 20000 and variance 4,000,000. It costs $10 per year to hold a tire in inventory, and each order arrives two weeks after being placed. The Company uses periodic review (R, S) policy. What is the review interval R (in years), estimated using EOQ.? Select one: a. 1.027 O b.0.1083 c. 0.2297 d. 0.1624 e. 0.3248
Annual demand is 16000 units, cost per order is $75 and carrying cost per unit as a percentage is 10%. The company works 250 weeks a year; the lead-time on all orders placed is 6 working days. Assuming constant lead-time demand, and a unit cost of $45 what is the economic order quantity? What is the reorder point. If lead-time demand shows variability that follows a normal distribution with a mean μ =420 and a standard deviation σ =20, what will the revised reorder point if two stock-outs (shortages) are allowed? What is the company’s reorder point if the probability of a stock-out on any cycle is restricted to 0.05?
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?
Furnitures sells office chairs ordered from its flagship store. It costs $100 to place an order, and the lead time is two weeks. Demand during lead time is N(40, 1.96). in future goodwill. It pays $60 for each chair and sells it for $100. The annual holding a chair inventory is 30% of its purchase cost. Furnitures estimates that each stockout causes a loss of $50 a) Assuming that all demand is backlogged, what are the reorder point and the safety stock level? b) To meet 99% service objective, what should be the safety stock level for Type 1 Service? For Type 2 Service?
Furnco sells secretarial chairs. Annual demand isnormally distributed, with mean of 1,040 chairs and standarddeviation of 50.99 chairs. Furnco orders its chairs from itsflagship store. It costs $100 to place an order, and the leadtime is two weeks. Furnco estimates that each stockoutcauses a loss of $50 in future goodwill. Furnco pays $60 foreach chair and sells it for $100. The annual cost of holdinga chair in inventory is 30% of its purchase cost.a Assuming that all demand is backlogged, what arethe reorder point and the safety stock level? b Assuming that all stockouts result in lost sales, de-termine the optimal reorder point and the safety stock level.
5. A product has an average daily demand of 400 units with standard deviation of 10.0 units. Lead-time is 1 day. If management would like to satisfy all demand in 80% of the cycles, what is the reorder point? 6. A product sells for $24 per unit and costs the retailer $12 per unit, unsold units by the end of the season are salvaged for $7.0. Demand is normally distributed with a mean of 1000 units and standard deviation of 100 units. How many units should the retailer order? 7. A product sells for $24 per unit and costs the retailer $12 per unit, unsold units by the end of the season are salvaged for $9.0. Demand is normally distributed with a mean of 1000 units and standard deviation of 100 units. How many units should the retailer order?
A health and nutrition store stocks a multivitamin with an annual demand of 1,000 bottles has Co probability distribution with μ = 25 and σ = 5. (a) What is the recommended order quantity? (Round your answer to the nearest integer.) = $23.50 and C = $9. The demand exhibits some variability such that the lead-time demand follows a normal (b) What are the reorder point and safety stock if the store desires at most a 4% probability of stock-out on any given order cycle? (Round your answers to the nearest integer.) reorder point safety stock (c) If a manager sets the reorder point at 30, what is the probability of a stock-out on any given order cycle? (Round your answer to four decimal places.) How many times would you expect a stock-out during the year if this reorder point were used? (Round your answer to the nearest integer.)
Please do not give solution in image format thanku Typically George Heinrich yearly uses 1500 of a certain sub assembly part that has an annual holding cost of $45 per unit. Each order placed costs George $150.In one year he finds out that his forecasting department has made an error estimating the demand and instead of the correct demand they had reported the same 1500 units and calculated the EOQ resulting in an error of %1 in optimal total cost. What is the correct demand value?
If EOQ = 289 units, S = $100, and H = $1 per unit per month, what approx. annual demand (D) level would the EOQ model best fit? Pick the closest answer option. EOQ = Sq root of [(2D*S)/H] D = annual demand in units S = cost of placing 1 order; H = cost of holding 1 unit of that item in inventory for 1 year 3596 units 3540.00 units 5011 units 4510 units
Even if we have substantial uncertainty in the parameters in the EOQ-model, it is still quite a useful model. Why?
One item a computer store sells is supplied by a vendor who handles only that item. Demand forthat item recently changed, and the store manager must determine when to replenish it. The managerwants a probability of at least 96 percent of not having a stockout during lead time. The managerexpects demand to average a dozen units a day and have a standard deviation of two units a day.Lead time is variable, averaging four days with a standard deviation of one day. Assume normalityand that seasonality is not a factor.a. When should the manager reorder to achieve the desired probability?b. Why might the model not be appropriate if seasonality were present?