Purchase Solution

Order points and safety stock

Not what you're looking for?

Ask Custom Question

Bell computers produces and stocks compute printers in its finished goods warehouse. These DDLT historical data are believed to be representative of future demand for one printer model.

aActual DDLT Frequency
0-29 0
30-39 .10
40-49 .10
50-59 .15
60-69 .20
70-79 .25
80-89 .10
90-99 .05
100-109 .05
110-120 0

I need some help with this question. I do not understand.

1. If at least a 90 percent service level is to be provided for these printers a. what would be the order point? b. what would be the safety stock?

Purchase this Solution
Solution Summary

The solution orders points and safety stock for Bell computers. The DDLT historical data are determined for a printer model.

Purchase this Solution
Free BrainMass Quizzes
Production and cost theory

Understanding production and cost phenomena will permit firms to make wise decisions concerning output volume.

Team Development Strategies

This quiz will assess your knowledge of team-building processes, learning styles, and leadership methods. Team development is essential to creating and maintaining high performing teams.

SWOT

This quiz will test your understanding of the SWOT analysis, including terms, concepts, uses, advantages, and process.

Understanding Management

This quiz will help you understand the dimensions of employee diversity as well as how to manage a culturally diverse workforce.

Situational Leadership

This quiz will help you better understand Situational Leadership and its theories.

View More Free Quizzes
Related BrainMass Solutions

  • ROP and service level

    76508 ROP and service level A beer distributor reorders when a stock item drops to a reorder point. Reorder points include statistical safety stocks with the service level set at 95%.

  • Support EOQ: Hospital Glove Simulation (UOP)

    If safety stock = optimal In this case, the optimal solution is when the learner keeps safety stock equal to the optimal values (+/- 10%) after considering the costs involved. Learning points 1.

  • Calculating Order Points

    what is the order point? b. what is the safety stock? So, order point = EDDLT + SS but i can't figure out how exactly to do this. Please see the attached file. Solutions shows calculations of order point and safety stock,

  • Inventory policy with uncertain demand and backorder

    Answer the following questions: 2.1) Write down the model name and parameters. 2.2) What are the optimal lot size and reorder points for white paint (include the formulas)? 2.3) What is the optimal safety stock (include the formula)?

  • Safety Stock and Reorder Point

    ROP 706.8 Pounds Thus, the company's ROP would increase to 706.8 pounds from 691.04 pounds This solution provides calculations in Excel for safety stocks and reorder points.

  • auto shop performs a monthly inventory count

    time: 15 days Order Size = Mean demand over lead time + safety stock - inventory on hand Mean demand over lead time = daily demand x lead time = 20 x 15 = 300 units Safety Stock = z x sqrt (lead time x std dev ^2) z for 98% = 2.05 from

  • Inventory Issues and Reorder Point

    Carrying cost = 100*10=1000 This solution shows step-by-step calculations to calculate the expected cost, reorder point, safety stock, annual stock-out cost and annual carrying cost at varying reorder points.

  • Calculations for corporate finance questions

    The order cost is $50.00 per order and the carrying cost is $2.00 per unit.

  • Inventory Management

    Solution contains calculations of Economic Order Quantity (EOQ), appropriate Safety Stock, reorder Point, annual Order Costs, annual Holding Costs and total Annual Costs (including safety stock):

View More Related Solutions