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Problem #2 - Jasper Inc. has four different air conditioning SKUS: J101, J102, J103 and J104. The following four questions requires you to provide recommendation to their approach for safety stock and reorder point for these SKUS. а. SKU J101 has a demand that is normally distributed during the lead time, with a mean of 500 units and standard deviation of 10. If Jasper cannot have stockouts in more than 5% of the time in any order, how much safety stock should be maintained and at what reorder point? b. Calculate the safety stock and reorder point for SKU J102, assuming that its daily demand is normally distributed with a mean of 25, standard deviation of 5, lead time is 5 days, and must operate at 90% service level.

Problem #2 - Jasper Inc. has four different air conditioning SKUS: J101, J102, J103 and J104. The following four questions requires you to provide recommendation to their approach for safety stock and reorder point for these SKUS. а. SKU J101 has a demand that is normally distributed during the lead time, with a mean of 500 units and standard deviation of 10. If Jasper cannot have stockouts in more than 5% of the time in any order, how much safety stock should be maintained and at what reorder point? b. Calculate the safety stock and reorder point for SKU J102, assuming that its daily demand is normally distributed with a mean of 25, standard deviation of 5, lead time is 5 days, and must operate at 90% service level.

Glencoe Algebra 1, Student Edition, 9780079039897, 0079039898, 2018
Glencoe Algebra 1, Student Edition, 9780079039897, 0079039898, 2018
18th Edition
ISBN:9780079039897
Author:Carter
Publisher:Carter
Chapter10: Statistics
Section10.5: Comparing Sets Of Data
Problem 13PPS
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Problem #2 - Jasper Inc. has four different air conditioning SKUS: J101, J102, J103 and J104. The following four questions requires you to provide recommendation to their approach for safety stock and reorder point for these SKUS. SKU J101 has a demand that is normally distributed during the lead time, with a mean of 500 units and а. standard deviation of 10. If Jasper cannot have stockouts in more than 5% of the time in any order, how much safety stock should be maintained and at what reorder point? b. Calculate the safety stock and reorder point for SKU J102, assuming that its daily demand is normally distributed with a mean of 25, standard deviation of 5, lead time is 5 days, and must operate at 90% service level.
Transcribed Image Text:Problem #2 - Jasper Inc. has four different air conditioning SKUS: J101, J102, J103 and J104. The following four questions requires you to provide recommendation to their approach for safety stock and reorder point for these SKUS. SKU J101 has a demand that is normally distributed during the lead time, with a mean of 500 units and а. standard deviation of 10. If Jasper cannot have stockouts in more than 5% of the time in any order, how much safety stock should be maintained and at what reorder point? b. Calculate the safety stock and reorder point for SKU J102, assuming that its daily demand is normally distributed with a mean of 25, standard deviation of 5, lead time is 5 days, and must operate at 90% service level.
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