A newspaper publisher uses roughly 800 metres of baling wire each day to secure bundles of newspapers

Question:

A newspaper publisher uses roughly 800 metres of baling wire each day to secure bundles of newspapers while they are being distributed to carriers. The paper is published Monday through Saturday. Lead time for purchase of wires is six workdays. Tire stock-out risk for various levels of safety stock is as follows: 1,500 metres, .10; 1,800 metres, .05; 2,100 metres, .02; and 2,400 metres, .01. What is die appropriate reorder point given that the company desires a lead time service level of 95 percent?
Fantastic news! We've Found the answer you've been seeking!

Step by Step Answer:

Related Book For  book-img-for-question

Operations Management

ISBN: 978-0071091428

4th Canadian edition

Authors: William J Stevenson, Mehran Hojati

Question Posted: