Answered step by step
Verified Expert Solution
Question
1 Approved Answer
a. Calculate the standard deviation (sigma). (2 points) b. Identify the safety factor for a service level of 98% and calculate the safety stock.
a. Calculate the standard deviation (sigma). (2 points) b. Identify the safety factor for a service level of 98% and calculate the safety stock. (2 points) c. Calculate the order point if lead time is 15 days. (2 points) Forecast Actual Period Demand Demand 1 2000 2175 175 30625 2 2000 2150 150 22500 3 2000 2150 150 22500 4 2000 2175 175 30625 5 2000 2150 150 22500 6 2000 2125 125 15625 7 2000 2075 75 5625 8 2000 2050 50 2500 9 2000 2025 25 625 10 2000 2000 0 0 SIGMA sqrt 153125/10-123.74 === safety factor 2.05*123.74-253.67 safety stock 253.67 I
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Lets break down the calculations step by step based on the provided data a Calculate the standard de...
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started
Operations Management
Authors: William J Stevenson, Mehran Hojati
4th Canadian edition
978-1259270154, 1259270157, 978-0071091428
