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Managing Operations Across the Supply Chain 1st Edition by Morgan Swink,Steven Melnyk,Bixby Cooper, Janet Hartley
Edition 1ISBN: 978-0077426903Managing Operations Across the Supply Chain 1st Edition by Morgan Swink,Steven Melnyk,Bixby Cooper, Janet Hartley
Edition 1ISBN: 978-0077426903 Exercise 24
A sporting goods company has a distribution center which maintains inventory of fishing rods.The fishing rods have the following demand, lead time and cost characteristics:
Average demand = 100 units per day, with a standard deviation of 12 units
Average lead time = 12 days with a standard deviation of 2 days
250 days per year
unit cost = $25
desired service level = 95%
Ordering cost = $50
Inventory carrying cost = 20%
The basic question, how many fishing rods should the distribution center carry to provide the desired service level? There are, of course, many other specific questions, such as EOQ? Average cycle stock?
Average demand = 100 units per day, with a standard deviation of 12 units
Average lead time = 12 days with a standard deviation of 2 days
250 days per year
unit cost = $25
desired service level = 95%
Ordering cost = $50
Inventory carrying cost = 20%
The basic question, how many fishing rods should the distribution center carry to provide the desired service level? There are, of course, many other specific questions, such as EOQ? Average cycle stock?
Explanation
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Verified
The minimum inventory level or the reord...
Managing Operations Across the Supply Chain 1st Edition by Morgan Swink,Steven Melnyk,Bixby Cooper, Janet Hartley
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