Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

The ToyWorld company produces toys out of plastic ordered from an outside supplier. ToyWorld's daily demand for plastic is normally distributed with a mean

 

The ToyWorld company produces toys out of plastic ordered from an outside supplier. ToyWorld's daily demand for plastic is normally distributed with a mean of 7,800 pounds and a standard deviation of 1,050 pounds. Lead time is 16 days. (Use the Formula Sheet Z table to determine Z values.) a. ToyWorld uses an average of pounds of plastic during the lead time. Find the average pounds of plastic. b. If ToyWorld uses a 70% service level, how much safety stock will be used? c. What is the reorder point if ToyWorld wants to limit the probability of a stockout to 8 percent? d. What is the service level if ToyWorld reorders when the plastic inventory reaches 134,586 pounds?

Step by Step Solution

3.50 Rating (147 Votes )

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

Step: 3

blur-text-image

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

Matching Supply with Demand An Introduction to Operations Management

Authors: Gerard Cachon, Christian Terwiesch

3rd edition

73525200, 978-0073525204

More Books

Students also viewed these General Management questions

Question

=+b. Examine the chart in part (a) for any out-ofcontrol points.

Answered: 1 week ago