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An Introduction to Management Science 13th Edition by David Anderson,Dennis Sweeney ,Thomas Williams ,Jeffrey Camm, Kipp Martin
Edition 13ISBN: 978-1439043271An Introduction to Management Science 13th Edition by David Anderson,Dennis Sweeney ,Thomas Williams ,Jeffrey Camm, Kipp Martin
Edition 13ISBN: 978-1439043271 Exercise 2
For Floyd Distributors in Problem 29, we were given Q * = 25, D = 200, C h , = $5, and a normal lead-time demand distribution with ? = 12 and ? = 2.5.
a. What is Floyd's reorder point if the firm is willing to tolerate two stockouts during the year?
b. What is Floyd's reorder point if the firm wants to restrict the probability of a stockout on any one cycle to at most 1 %?
c. What are the safety stock levels and the annual safety stock costs for the reorder points found in parts (a) and (b)?
a. What is Floyd's reorder point if the firm is willing to tolerate two stockouts during the year?
b. What is Floyd's reorder point if the firm wants to restrict the probability of a stockout on any one cycle to at most 1 %?
c. What are the safety stock levels and the annual safety stock costs for the reorder points found in parts (a) and (b)?
Explanation
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a)To calculate the revised reorder point...
An Introduction to Management Science 13th Edition by David Anderson,Dennis Sweeney ,Thomas Williams ,Jeffrey Camm, Kipp Martin
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