Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Fairmount distribution supplies approx. 1000 towels per day to their retail stores. This demand has a standard deviation of 100 towels per day. The expected

image text in transcribed
Fairmount distribution supplies approx. 1000 towels per day to their retail stores. This demand has a standard deviation of 100 towels per day. The expected lead time is two days. If the distribution centre has a 98% service level to satisfy customers expectations. What should the reorder point be? What is the safety stock? Service Level 50.00% 55.00 60.00 65.00% 70.00% 75.00 B0.00 Service Factor 00.00 00.13 00.25 010 Service Level 90.00% 91.00 92.00% 93.00 00:52 00.67 00.84 00. 81.00 2.00 83.00 84.00 85.00 86.00% 87.00% 88.00% 89.00% 00.92 00.95 Service Factor 01.28 01.34 01.41 01.48 01.55 01.64 01.75 01.8 02.05 02.33 02.58 02.65 02.75 02. 03.09 03.72 94.00 95.00 96.00 97.00 98.00% 99.00 99.5ON 99.60% 99.70 99.BOX 99.90 99.99 00.99 O1.04 OLOR 01.13 01.17 01.23 OROP = 2000, SS = 188 O ROP = 2305, SS = 205 ROP = 2205, SS = 205 O ROP -2188, SS = 188

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

College Accounting A Practical Approach Chapters 1-25

Authors: Jeffrey Slater, Mike Deschamps

15th Edition

0137504284, 9780137504282

More Books

Students also viewed these Accounting questions

Question

=+2 Identify the treatment and response.

Answered: 1 week ago