SCENARIO 1A manufacturing company Grass Huts Manufacturing Limited(GHM), operating under a continuous review system, has an averagedemand of 50 units per week for the item it produces. The standarddeviation in weekly demand is 20 units. The lead-time for the itemis six weeks, and it costs the company $30 to process each order.The holding cost for each unit is $10 per year. The companyoperates 52 weeks per year.A normal distribution table is appended to this exam.a) Use the information in Scenario 1. What is the desired safetystock level, if the company has a policy of maintaining a 95%cycle-service level?b) Use the information in Scenario 1. What is the Reorder Point, ifthe company has a policy of maintaining a 95% cycle-servicelevel?c) Use the information in Scenario 1. What is the Reorder Point ifthe company finally decides to implement a 98 percent cycleservice level?d) If lead-time increases by three weeks, what is the reorder pointneeded to maintain a 98% servicelevel?

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Answered: SCENARIO 1 A manufacturing company…

MATLAB: An Introduction with Applications

6th Edition

ISBN:9781119256830

Author:Amos Gilat

Publisher:Amos Gilat

Chapter1: Starting With Matlab

Section: Chapter Questions

Problem 1P

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