Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

show how to solve on paper please Thomas Built Buses (TBB) manufacturers yellow school buses at its facility in High Point, NC. TBB orders its

show how to solve on paper please
image text in transcribed
Thomas Built Buses (TBB) manufacturers yellow school buses at its facility in High Point, NC. TBB orders its windshields from a specialty vehicle glass supplier. Weekly requirements for the windshields are normally distributed with a mean of 167 units/week and standard deviation of 88 units/week. Lately, the supplier has been unreliable with its deliveries. TBB estimates the lead time is normally distributed with mean 3 weeks and standard deviation 2 weeks. TBB orders the windshields at a unit cost of $2314. The annual cost of carrying inventory at the plant is 30% of the purchase cost per unit per year. TBB reviews its windshield inventory continuously. Assume 52 weeks/year, 7 days/week, and 364 days/year. Compute the safety stock needed to maintain a service level of 92%. - Carry calculations to at least 3 decimal places. - Round your answer to the nearest tenth of a unit (one decimal place). A table of z-values is provided for your reference

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

Essentials Of Inventory Management

Authors: Max Muller

3rd Edition

1400212375, 9781400212378

More Books

Students also viewed these General Management questions