Jasper sells 14,800 carvings a year. He has weekly demand of 285 carvings with a weekly standard deviation of 85. The cost for Jasper to place an order to his supplier is $31.00, and the time from ordering to receipt is ten weeks. The annual inventory carrying cost is $0.10 per carving. a. What is the reorder point necessary to provide a 90 percent service level over the lead time? Round the z score to 2 decimal places (e.g. z=0.58) and your final answer to the nearest whole number. Reorder point 3,194 b. Suppose Jasper reduces the safety stock of this item by 55 percent. What is the new service level? Round the z score to 2 decimal places (e.g., z=4.82) and round your answer to the nearest .1 percent (e.g., if the answer is 13.17%, enter 13.2, not .132 or 13.2%). Service level 71.9 % .. ...............

Jasper sells 14,800 carvings a year. He has weekly demand of 285 carvings with a weekly standard deviation of 85. The cost for Jasper to place an order to his supplier is $31.00, and the time from ordering to receipt is ten weeks. The annual inventory carrying cost is $0.10 per carving. a. What is the reorder point necessary to provide a 90 percent service level over the lead time? Round the z score to 2 decimal places (e.g. z=0.58) and your final answer to the nearest whole number. Reorder point 3,194 b. Suppose Jasper reduces the safety stock of this item by 55 percent. What is the new service level? Round the z score to 2 decimal places (e.g., z=4.82) and round your answer to the nearest .1 percent (e.g., if the answer is 13.17%, enter 13.2, not .132 or 13.2%). Service level 71.9 % .. ...............

Purchasing and Supply Chain Management

6th Edition

ISBN:9781285869681

Author:Robert M. Monczka, Robert B. Handfield, Larry C. Giunipero, James L. Patterson

Publisher:Robert M. Monczka, Robert B. Handfield, Larry C. Giunipero, James L. Patterson

Chapter16: Lean Supply Chain Management

Section: Chapter Questions

Problem 10DQ: The chapter presented various approaches for the control of inventory investment. Discuss three...

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