Dayton Electronics demands a part at a daily rate of 100 units. The lead time for replenishment is 5 days for this item. The standard deviation of demand during the lead time is 6. Dayton Electronics prides itself on having a high level of customer service and strives to achieve a service level of 99% How much safety stock should Dayton Electronics hold for this item? What will be the annualized cost of this safety stock if the opportunity cost of capital for Dayton Electronics is 15% and the tem costs $1607 Click the icon to view the table for the 2-values for the given probabilities. The safety stockis units (Enter your response rounded up to the next whole number) Reference Standard Normal Table Service level 0.90 0.95 0.96 0.99 Print z value 1.28 1.05 2.05 2.33 Done

Dayton Electronics demands a part at a daily rate of 100 units. The lead time for replenishment is 5 days for this item. The standard deviation of demand during the lead time is 6. Dayton Electronics prides itself on having a high level of customer service and strives to achieve a service level of 99% How much safety stock should Dayton Electronics hold for this item? What will be the annualized cost of this safety stock if the opportunity cost of capital for Dayton Electronics is 15% and the tem costs $1607 Click the icon to view the table for the 2-values for the given probabilities. The safety stockis units (Enter your response rounded up to the next whole number) Reference Standard Normal Table Service level 0.90 0.95 0.96 0.99 Print z value 1.28 1.05 2.05 2.33 Done

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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The chapter presented various approaches for the control of inventory investment. Discuss three additional approaches not included that might involve supply chain managers.
Samsung implements a Continuous Inventory System for an electronic component. The inventory manager of Samsung is trying to determine the safety stock and reorder point for that component. It takes 4 days for the supplier to ship the components to Samsung after they receive the order. Samsung expects to have a daily demand of 100 units. The standard deviation of daily demand is 50 units. After a lengthy debate, the management team at Samsung agrees to target an 87% service level. What is the amount of safety stock? If your answer is not an integer, keep two decimal points.
The demand at Arnold Palmer Hospital for a special-ized surgery pack is 60 per week, virtually every week. The lead time from McKesson, its main supplier, is normally distributed, with a mean of 6 weeks for this product and astandard deviation of 2 weeks. A 90% weekly service level isdesired. Find the ROP.
Peter Sagan is in charge of maintaining hospital supplies at Champs Hospital. During the past year the mean weekly demand for a special type of tubing was 186 packages of this tubing with a standard deviation of 13 packages of tubing. The lead time for receiving this tubing from the supplier is 1.5 weeks. Peter would like to maintain a 95% service level and places an order for 750 packages every time an order is placed. d) If the weekly demand is 186 and there is a 1.5 week lead time - what is the reorder point (99%      service level)? e) If the carrying cost per year is $0.50/unit/year - what is the additional cost associate with the      99% service level compared to 95% service level (i.e. cost of safety stock at 99% level - cost of      safety stock at 95% service level)? solve on excel
Peter Sagan is in charge of maintaining hospital supplies at Champs Hospital. During the past year the mean weekly demand for a special type of tubing was 186 packages of this tubing with a standard deviation of 13 packages of tubing. The lead time for receiving this tubing from the supplier is 1.5 weeks. Peter would like to maintain a 95% service level and places an order for 750 packages every time an order is placed. d) If the weekly demand is 186 and there is a 1.5 week lead time - what is the reorder point (99%      service level)? e) If the carrying cost per year is $0.50/unit/year - what is the additional cost associate with the      99% service level compared to 95% service level (i.e. cost of safety stock at 99% level - cost of      safety stock at 95% service level)?
Maroons Medical Supplies, Inc. must order masks from its supplier in lots of 1 dozen boxes. Given the information provided below, complete the following table: Annual demand                                           26,000 dozen Cost per order placed                                 P30 Carrying cost                                                 20% Price per dozen                                            P7.80    Order Size (Dozen) 250 500 1,000 2,000 13,000 26,000 Number of orders Average inventory Carrying cost Order cost Total cost 1. What is the EOQ? Please include/fill the table and solve for EOQ. Thank you so much!
Peter Sagan is in charge of maintaining hospital supplies at Champs Hospital. During the past year the mean weekly demand for a special type of tubing was 186 packages of this tubing with a standard deviation of 13 packages of tubing. The lead time for receiving this tubing from the supplier is 1.5 weeks. Peter would like to maintain a 95% service level and places an order for 750 packages every time an order is placed. a) How much safety stock should be used for a 95% service level? b) If the weekly demand is 186 and there is a 1.5 week lead time - what is the reorder point (95% service level)? c) How much safety stock should be used for a 99% service level? solve using excel
FlyUs Airlines is unhappy with the number of empty seats on its New York to Philadelphia flight. To remedy the problem, the airline is offering a special discounted rate of $89 instead of the normal $169, but only for 7-day advance purchases and for a limited number of seats per flight. The aircraft flown from NY to Philly holds 100 passengers. Last month’s distribution of full-fare passengers is shown below. How many seats should FlyUs reserve for full-fare passengers? Full-Fare Frequency 50 15 55 20 60 35 65 20 70 10
Alina Limited is a manufacturer of widgets orders components for use in manufacturing. The estimated demand for the components during the coming year is 15,000. Order costs are $100 per order; carrying costs are $12 per component. Using the economic order quantity model What is Alina Ltd’s optimum order quantity? If the supplier guarantees a three (3) day delivery on any order that is placed, What is the re-order point?
Earthbound Corporation is a manufacturer and distributor of air conditioning systems. You have been engaged to install an accounting system for Earthbound period among the inventory control features earthbound desires as part of the system are indicators of how much to order and when period. The following information is furnished for a product called “Hydronix” which is carried in inventory: Hydronix are sold by the gross (12 dozen) at a list price of P800 per gross FOB shipper. John receives a 40% trade discount off list price on purchases in gross lots. Freight cost is P20 gross from the shipping point to John's plant John uses about 5,000 Hydronix during 259-day production year and must purchase a total of 36 gross per year to allow for normal breakage. Minimum and maximum usages are 12 and 28, respectively. It takes 20 working days (normal delivery time) to receive an order from the date the purchase request is initiated. A rush order in full gross lots can be received by air…
Micro-Electronics Warehouse Headset and Webcam Sale Item Type Reg. Price After Savings Price BuddyChat 200 Headset $34.72 $24.40 BuddyChat 300 Headset $41.27 $34.91 BuddyCam HD Webcam $83.54 $61.46 You have decided to purchase the headset with the greatest markdown percent and the BuddyCam HD webcam in order to take advantage of an "Extra $15 Rebate" offer when you purchase both. What is the markdown percent on your total purchase including the rebate?
No Spacing Heading 1 Paragraph Styles Ed Item SKU A3378 has a demand that is normally distributed during the lead time, with a mean of 360 units and standard deviation 9999 of 12. If Hinsdale cannot have stockout in more than 10% of the time in any order, how much safety stock should be maintainec and at what reorder point? Calculate Hinsdale's safety stock and reorder point for three other SKUS under the following conditions of demand and lead time: A) SKU F5402: daily demand is normally distributed with a mean of 16, standard deviation of 4, lead time is 4 days, and must operate at a 95% service level Calculate Hinsdale's safety stock and reorder point for three other SKUS under the following conditions of demand and lead time: 1. SKU F5402: daily demand is normally distributed with a mean of 16, standard deviation of 4, lead time is 4 days, and must operate at a 95% service level. hs: On