Mylab Operations Management With Pearson Etext -- Access Card -- For Operations Management: Sustainability And Supply Chain Management (13th Edition)
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Chapter 16, Problem 2P

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••• 16.9 Given the following information about a product at Michael gibson’s firm, what is the appropriate setup time?

Annual demand = 39,000 units

Daily demand = 150 units

Daily production = 1,000 units

Desired lot size = 150 units

Holding cost per unit per year    = $10

Setup labor cost per hour = $40

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Students have asked these similar questions
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   Please show the solution. Thank you.
Question 23  Company A carries 5,000 items. Customers ordered 1,000 items from inventory last week. Company A was able to fulfill 600 items of the order. What is the stock out probability for last week? Group of answer choices 0.08 0.4 0.6 0.92
Question: What level of safety stock should be maintained?   Please show the solution. Thank you
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