The reorder point that should be established to ensure a 95% service level. Introduction: Reorder point: It is the level of inventory of an item which triggers an action to replenish the item since it falls below a certain level. Service level: The service level is the chance of demand that can be serviced before attaining the stockout levels.

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Answer 1

Question

Features Features Normal distribution is characterized by two parameters, mean (µ) and standard deviation (σ). When graphed, the mean represents the center of the bell curve and the graph is perfectly symmetric about the center. The mean, median, and mode are all equal for a normal distribution. The standard deviation measures the data's spread from the center. The higher the standard deviation, the more the data is spread out and the flatter the bell curve looks. Variance is another commonly used measure of the spread of the distribution and is equal to the square of the standard deviation.

Chapter 14, Problem 7P

a)

Summary Introduction

To calculate: The reorder point that should be established to ensure a 95% service level.

Introduction:

Reorder point:

It is the level of inventory of an item which triggers an action to replenish the item since it falls below a certain level.

Service level:

The service level is the chance of demand that can be serviced before attaining the stockout levels.

b)

Summary Introduction

To determine: The reorder point that should be established to ensure that not more than one stockout occurs in the year.

c)

Summary Introduction

To calculate: The average inventory, cycle inventory, and safety stock.

d)

Summary Introduction

To calculate: The number of inventory turnover times per year.

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A company that operates 300 days a year requires 928 units of product B annually. The supplier has a lead time of 4 days to deliver the goods. What is the re-order point?

Answer 2

Question

Features Features Normal distribution is characterized by two parameters, mean (µ) and standard deviation (σ). When graphed, the mean represents the center of the bell curve and the graph is perfectly symmetric about the center. The mean, median, and mode are all equal for a normal distribution. The standard deviation measures the data's spread from the center. The higher the standard deviation, the more the data is spread out and the flatter the bell curve looks. Variance is another commonly used measure of the spread of the distribution and is equal to the square of the standard deviation.

Chapter 14, Problem 7P

a)

Summary Introduction

To calculate: The reorder point that should be established to ensure a 95% service level.

Introduction:

Reorder point:

It is the level of inventory of an item which triggers an action to replenish the item since it falls below a certain level.

Service level:

The service level is the chance of demand that can be serviced before attaining the stockout levels.

b)

Summary Introduction

To determine: The reorder point that should be established to ensure that not more than one stockout occurs in the year.

c)

Summary Introduction

To calculate: The average inventory, cycle inventory, and safety stock.

d)

Summary Introduction

To calculate: The number of inventory turnover times per year.

Expert Solution & Answer

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Check out a sample textbook solution

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Answer 3

Question

Features Features Normal distribution is characterized by two parameters, mean (µ) and standard deviation (σ). When graphed, the mean represents the center of the bell curve and the graph is perfectly symmetric about the center. The mean, median, and mode are all equal for a normal distribution. The standard deviation measures the data's spread from the center. The higher the standard deviation, the more the data is spread out and the flatter the bell curve looks. Variance is another commonly used measure of the spread of the distribution and is equal to the square of the standard deviation.

Chapter 14, Problem 7P

a)

Summary Introduction

To calculate: The reorder point that should be established to ensure a 95% service level.

Introduction:

Reorder point:

It is the level of inventory of an item which triggers an action to replenish the item since it falls below a certain level.

Service level:

The service level is the chance of demand that can be serviced before attaining the stockout levels.

b)

Summary Introduction

To determine: The reorder point that should be established to ensure that not more than one stockout occurs in the year.

c)

Summary Introduction

To calculate: The average inventory, cycle inventory, and safety stock.

d)

Summary Introduction

To calculate: The number of inventory turnover times per year.

Expert Solution & Answer

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Check out a sample textbook solution

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Answer 4

Question

Features Features Normal distribution is characterized by two parameters, mean (µ) and standard deviation (σ). When graphed, the mean represents the center of the bell curve and the graph is perfectly symmetric about the center. The mean, median, and mode are all equal for a normal distribution. The standard deviation measures the data's spread from the center. The higher the standard deviation, the more the data is spread out and the flatter the bell curve looks. Variance is another commonly used measure of the spread of the distribution and is equal to the square of the standard deviation.

Chapter 14, Problem 7P

a)

Summary Introduction

To calculate: The reorder point that should be established to ensure a 95% service level.

Introduction:

Reorder point:

It is the level of inventory of an item which triggers an action to replenish the item since it falls below a certain level.

Service level:

The service level is the chance of demand that can be serviced before attaining the stockout levels.

b)

Summary Introduction

To determine: The reorder point that should be established to ensure that not more than one stockout occurs in the year.

c)

Summary Introduction

To calculate: The average inventory, cycle inventory, and safety stock.

d)

Summary Introduction

To calculate: The number of inventory turnover times per year.

Expert Solution & Answer

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Answer 5

Chapter 14, Problem 7P

a)

Summary Introduction

To calculate: The reorder point that should be established to ensure a 95% service level.

Introduction:

Reorder point:

It is the level of inventory of an item which triggers an action to replenish the item since it falls below a certain level.

Service level:

The service level is the chance of demand that can be serviced before attaining the stockout levels.

b)

Summary Introduction

To determine: The reorder point that should be established to ensure that not more than one stockout occurs in the year.

c)

Summary Introduction

To calculate: The average inventory, cycle inventory, and safety stock.

d)

Summary Introduction

To calculate: The number of inventory turnover times per year.

Answer 6

Chapter 14, Problem 7P

a)

Summary Introduction

To calculate: The reorder point that should be established to ensure a 95% service level.

Introduction:

Reorder point:

It is the level of inventory of an item which triggers an action to replenish the item since it falls below a certain level.

Service level:

The service level is the chance of demand that can be serviced before attaining the stockout levels.

Answer 7

Chapter 14, Problem 7P

a)

Summary Introduction

To calculate: The reorder point that should be established to ensure a 95% service level.

Introduction:

Reorder point:

It is the level of inventory of an item which triggers an action to replenish the item since it falls below a certain level.

Service level:

The service level is the chance of demand that can be serviced before attaining the stockout levels.

Answer 8

b)

Summary Introduction

To determine: The reorder point that should be established to ensure that not more than one stockout occurs in the year.

Answer 9

b)

Summary Introduction

To determine: The reorder point that should be established to ensure that not more than one stockout occurs in the year.

Answer 10

c)

Summary Introduction

To calculate: The average inventory, cycle inventory, and safety stock.

Answer 11

c)

Summary Introduction

To calculate: The average inventory, cycle inventory, and safety stock.

Answer 12

d)

Summary Introduction

To calculate: The number of inventory turnover times per year.

Answer 13

d)

Summary Introduction

To calculate: The number of inventory turnover times per year.

Answer 14

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Answer 15

Expert Solution & Answer

Answer 16

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Answer 17

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Solution Summary: The author calculates the reorder point that should be established to ensure that not more than one stockout occurs in the year.

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To determine: The reorder point that should be established to ensure that not more than one stockout occurs in the year.

To calculate: The average inventory, cycle inventory, and safety stock.

To calculate: The number of inventory turnover times per year.

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Chapter 14 Solutions