OM2 Ch12 solutions

# OM2 Ch12 solutions - Chapter 12 Managing Inventories...

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1 Chapter 12: Managing Inventories Reorder point/safety stock practice-text problems 4, 6, 7, and 8. Make note of the following before working these problems. For #4, only determine the reorder point WITH safety stock. The problem provides the demand forecast and the lead time. Use 40 boxes/month for the standard deviation of demand, and use 98% for the probability of not stocking out. For #6, do part d only, reorder point with safety stock. For #7, only determine the reorder point. The demand forecast, standard deviation of demand, lead time, and the service level (probability of not stocking out) are provided. For #8, treat this as a fixed order quantity/reorder point-safety stock problem, and determine the reorder point. The demand forecast, standard deviation of demand, lead time, and service level (probability of not stocking out) are provided. Solutions appear on the next page.

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2 (4) Average demand=200 boxes/month Standard deviation of demand=40 boxes/month Lead time=1 week Probability of not stocking out=98%
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OM2 Ch12 solutions - Chapter 12 Managing Inventories...

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