OM2 Ch12 solutions

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

Info iconThis preview shows pages 1–2. Sign up to view the full content.

View Full Document Right Arrow Icon
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.
Background image of page 1

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
2 (4) Average demand=200 boxes/month Standard deviation of demand=40 boxes/month Lead time=1 week Probability of not stocking out=98%
Background image of page 2
This is the end of the preview. Sign up to access the rest of the document.

Page1 / 2

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

This preview shows document pages 1 - 2. Sign up to view the full document.

View Full Document Right Arrow Icon
Ask a homework question - tutors are online