Student Transportation Now Inc. (STN) has a single supply depot that stocks and ships small maintenance items and replacement parts used by techni- cians that maintain STN's fleet of 45,000 school buses across 600 locations. All this activity combines to create normally distributed daily demand for all items at the depot, including these three popular requests: 

Questions 

1. Considering the reorder point policy set by the STN supply depot, how much safety stock is implied for each one of these three items? 

2. Considering the reorder point policy set by the STN supply depot, which item is the safest from stockouts? 3. What should STN change the condenser fan motor reorder point to, if it wants a service level of 85.54% for that item?

4. Suppose the 3-inch red reflectors' manufacturer has announced changes that will reduce its lead time on requests from the STN supply depot from 5 days to 4 days. If STN does not change its reorder point for that item, what will happen to its service level after these changes, and what will the new service level be?

Transcribed Image Text:

3-inch red reflectors 8-way flasher control unit Condenser fan motor Average Daily Demand at STN Depot 22 7 Standard Deviation in Daily Demand at STN Depot Lead Time (constant, in days) STN Depot's Reorder Point 130 5 5 1 2 15 15 2 2 35