Question
TheHastings Company is a nation-wide wholesaler for small electronic devices. One of its most popular items is a new GPS unit called the WAMI-1000. The
TheHastings Company is a nation-wide wholesaler for small electronic devices. One of its most popular items is a new GPS unit called the WAMI-1000. The company operates 365 days (52 weeks) in a year. Hastings has gathered the following information:
Average demand = 52,000 units/year
Standard deviation of yearly demand = 10,400 units
Average lead time = 5 weeks
Standard deviation of lead time= 1.5 weeks
Z (service level) =1.04
What is the optimal amount of safety stock for the company?
Select one:a. 5000b. 1565.25c. 1627.86d. 6627.86
Step by Step Solution
There are 3 Steps involved in it
Step: 1
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
Transport Operations
Authors: Allen Stuart
2nd Edition
978-0470115398, 0470115394
