Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Your HCO orders materials from supplier A. You annual demand for the materials is 15,000 units per year and the standard deviation of weekly demand

Your HCO orders materials from supplier A. You annual demand for the materials is 15,000 units per year and the standard deviation of weekly demand is 40 units. The unit costs, ordering costs and lead-times are provided in the table below. Assume that your desired service level is 98% (z=2.33). Supplier A: Unit cost: 10 Carrying cost (I): 30% Order Cost: 225 Lead-time in weeks: 2 b) How much safety stock would you need to hold for supplier A? Group of answer choices Less than 50 units Between 51-100 units Between 101-150 units More than 150 unit

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

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

Successful Project Management

Authors: Jack Gido, Jim Clements , Rose Baker

7th Edition

1337095478, 978-1337095471

More Books

Students also viewed these General Management questions