Respuesta :
Service level = 99 %
Lead time = 3 weeks
Weekly demand = 250
Standard deviation = 200
a. Reorder point = Demand during lead time + Safety stock
Reorder point = Average weekly demand * lead time + z * sqrt(lead time)* standard deviation of weekly demand
Reorder point = 250 * 3 + NORMSINV(0.99) * sqrt(3) * 200
Reorder point = 750 + 2.33 * sqrt(3) * 200
Reorder point = 750 + 807.14
Reorder point = 1557.14
Reorder point = 1557 (rounding to the nearest whole number)
The number of boards they have on order on average = 1557 boards
b.We have, in a normal distribution,
z = x - mean/standard deviation
2.33 = x- 250/200
x = 250 + 2.33 * 200 = 716
The number of boards they have on hand on average = 716 boards
c. Total holding cost per week = Average inventory * holding cost per week
Total holding cost per week =716/2 * 0.5
Total holding cost per week = 358 * 0.5
Total holding cost per week = $179
d. Holding cost incurred per board = Total holding cost /Number of boards
Holding cost incurred per board = 179/716
Holding cost incurred per board = $0.25
Holding costs are the costs of storing unsold inventory. Storage space, labor, and insurance, as well as the cost of damaged or spoiled goods, are all part of a company's holding costs. Inventory cost reduction is an important supply-chain management strategy.
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