Practical Management Science
6th Edition
ISBN: 9781337406659
Author: WINSTON, Wayne L.
Publisher: Cengage,
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- Increases in lead time ________reorder points. Group of answer choices Decrease Have no effect on Increasearrow_forwardBarbara Flynn is in charge of maintaining hospital supplies at General Hospital. During the past year, the mean lead time demand for bandage BX-5 was 70 (and was normally distributed). Furthermore, the standard deviation for BX-5 was 7. Ms. Flynn would like to maintain a 90% service level. Refer to the standard normal table for z-values. a) What safety stock level do you recommend for BX-5? Safety stock = units (round your response to the nearest whole number).arrow_forwardIn a Q system, the demand rate for strawberry ice cream is normally distributed, with an average of 295 pints per week. The lead time is 6 weeks. The standard deviation of weekly demand is 16 pints. Refer to the standard normal table for z-values. a. The standard deviation of demand during the 6-week lead time is 39 pints. (Enter your response rounded to the nearest whole number.) b. The average demand during the 6-week lead time is 1770 pints. (Enter your response as an integer.) c. The reorder point that results in a cycle-service level of 96 percent is pints. (Enter your response rounded to the nearest whole number.)arrow_forward
- If it takes a supplier four days to deliver an order once it has been placed and the standard deviation of daily demand is 10, which of the following is the standard deviation of demand during the lead time?arrow_forwardExplain the following based on Demand Management Demand Management Independent Demand Dependent Demand Random Variations Safety Stocksarrow_forwardA plastic canister manufacturing company maintains an annual safety stock of 500 units of plastic caps. If the company places an annual purchase order for 1,800 units of these caps, its average annual inventory, in units, is between: ( )1,500 and 1,300 ( )3,200 and 3,000 ( )2,400 and 2,200 ( )1,200 and 1,000 ( )1,900 and 1,700arrow_forward
- help me with parts a,,b,c. Previous experts provided the wrong answer for me and please draw the graph so i can get a clear image.arrow_forwardIn an ABC system based on revenue, C items individually make the lowest annual revenue contribution. TRUE FALSEarrow_forwardA demand driven model will likely lead to higher inventory levels due to safety stock. True Falsearrow_forward
- Steadily increasing or steadily decreasing orders are typical of a _______ pattern of demand. Group of answer choices Cyclic Level or horizontal Seasonal Trendarrow_forwardChicago's Hard Rock Hotel distributes a mean of 1,200 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 4-day lead time. The hotel expects a 95% service level to satisfy high guest expectations. Refer to the standard normal table for z-values. Z-Table: Z Pr(Z) 0.38 65 0.50 69 0.67 75 0.84 80 1.04 85 1.28 90 1.41 92 1.56 94 1.65 95 1.75 96 2.06 98 2.33 99 a) What is the reorder point? b) What is the safety stock?arrow_forward1- The number of orders in the inventory system (called A) is total demand (called D) divided D by order size per replenishment (called S) or A =". D follows a normal distribution with a mean of 100,000 and standard deviation of 5000. While S is a continuous uniform distribution between 20,000 and 30,000. Generate 500 A random number and find the average.arrow_forward
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