Given here is the distribution of the actual demand of an inventory item of the Cutex Manufacturing Company, over a long period of time The average lead time (with negligible variation) is 10 days Assuming that the distribution adequately represents the system, (a) determine the safety stock requir...

The Answer is in the image, click to view ...

Given here is the distribution of the actual demand of an inventory item of the Cutex Manufacturing

Question:

Given here is the distribution of the actual demand of an inventory item of the Cutex Manufacturing Company, over a long period of time.

image text in transcribed

The average lead time (with negligible variation) is 10 days.
Assuming that the distribution adequately represents the system,

(a) determine the safety stock required if it is desired to have no stockouts.

(b) determine the safety stock if it is desired to supply 95% of the DDL T (i.e. the service level is equal to 95%). Also obtain the re-order point corresponding to this.

Fantastic news! We've Found the answer you've been seeking!

Step by Step Answer:

Related Book For book-img-for-question

Quantitative Techniques In Management

ISBN: 99835

4th Edition

Authors: N D VOHRA

See More Books

Question Posted: Aug 30, 2024 07:02 AM

See More Questions

A trainee in a medical lab will be released to work on her own when her results agree with those of an experienced worker at the 95% confidence level. Results for a blood urea nitrogen analysis are...
Consider the following planar curve, which for t 0, traces out the involute of a circle of radius a. x = a(cos(t) + t sin(t)) y = a(sin(t) - t cos(t)) (a) Evalute the are length of this plannar...
Explain why the hermiticity of $\gamma^{0}$ and $\gamma^{5}$ and the antihermiticity of $\gamma$ are preserved in any representation unitarily equivalent to the Dirac representation.
1. Understand specific developmental theories that have been proposed to explain offending
Watson Company has a product that passes through two processes: grinding and polishing. During October, the grinding department transferred 20,000 units to the polishing department. The cost of the...
Problem 4: Computing end-end delay (20 pts) Consider the figure below, with three links, each with the specified transmission rate and link length. Transmission rate: 100 Mbps Link Length: 1 Km...
The demand for an item during the order period is known to be normally distributed with mean = 600 units and standard deviation = 50 units. What service level can the firm expect to offer (i) when it...
DB pie operates a conventional stock control system based on re-order levels and economic order quantities. The various control levels were set originally based on estimates which did not allow for...
Suppose you want to buy some new furniture for your family room. You currently have $500 and the furniture you want costs $600. If you can earn 6%, how long will you have to wait if you dont add any...
For many years professional football players have earned on average less than half of what professional baseball players earned. Using economic reasoning, how can this fact be explained?
Given the following information, determine the cost of the inventory at June 30 using the LIFO perpetual inventory method. Date Activities Units Acquired at Cost Units Sold at Retail June 1 Beginning...
Here is the income statement for Ivanhoe, Inc. Ivanhoe, Inc. Income Statement For the Year Ended December 31, 2025 Net sales $449,500 Cost of goods sold 211,500 Gross profit 238,000 Expenses...
The Federal Aviation Administration (FAA) requires that airplanes flying at the same altitude maintain a distance of at least 15,840 feet. An air traffic controller monitors a display of airplane...
Zhang incorporated her sole proprietorship by transferring inventory, a building, 100 percent of the corporation's stock. The property transferred to the corporati and adjusted tax bases: FMV...
Provide some examples of speech that may constitutionally be limited or silenced.
At the beginning of the year, Lam Ltd. had total assets of $800,000 and total liabilities of $500,000. Use this information to answer each of the following independent questions. (a) If Lam's total...
Divide into groups of 56 members. LO.1
Each group examines the following university request form for a complimentary parking pass and identifies flaws with the design of the form. LO.1
After identifying basic design flaws, groups then answer the following questions: a. Is the control cost effective? Are the costs associated with the control mechanism offset by the benefits derived?...
IMPORTANT NOTE: All Project Management Questions are from the same Project. You only need to solve the project one time. The CEO of Carol O'Lights Manufacturing, produces custom-built relay devices...
A manufacturer uses 100,000 components costing $1 each at a constant rate throughout the year. The cost of making a single order for more components is $10 and the holding costs for each component...
[11] If an investment's internal rate of return is lower than the market cost of capital: a) the investment should be accepted. b) the investment should be rejected. c) the investment should be put...

Given here is the distribution of the actual demand of an inventory item of the Cutex Manufacturing

Question:

Actual DDLT (in units) 81-100 101-120 Relative Frequency 0.06 0.19 121-140 0.28 141-160 0.40 161-180 0.05 181-200 0.02

Step by Step Answer:

Quantitative Techniques In Management

Students also viewed these Business questions