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    ANDI TE'A MARI SIMBALA
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    The document is a student's activity submission that includes calculations to determine: 1) A safety stock of 100 units for a product with weekly demand of 770 units and daily standard deviation of 10 units, reviewed every 28 days with 9 day lead time. 2) The current inventory status is -10 units with no units on hand or on order and 10 units backordered. 3) The number of units to order is 390 units to satisfy 95% of demand over the 28 day period plus the safety stock minus current inventory.

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    The document is a student's activity submission that includes calculations to determine: 1) A safety stock of 100 units for a product with weekly demand of 770 units and daily standard deviation of 10 units, reviewed every 28 days with 9 day lead time. 2) The current inventory status is -10 units with no units on hand or on order and 10 units backordered. 3) The number of units to order is 390 units to satisfy 95% of demand over the 28 day period plus the safety stock minus current inventory.

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    © All Rights Reserved
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    413 views1 page

    Activity 13

    Uploaded by

    ANDI TE'A MARI SIMBALA
    The document is a student's activity submission that includes calculations to determine: 1) A safety stock of 100 units for a product with weekly demand of 770 units and daily standard deviation of 10 units, reviewed every 28 days with 9 day lead time. 2) The current inventory status is -10 units with no units on hand or on order and 10 units backordered. 3) The number of units to order is 390 units to satisfy 95% of demand over the 28 day period plus the safety stock minus current inventory.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Flag for inappropriate content
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    SIMBALA, Andi Te’a Mari O.

    ID Number: 2204965

    Production and Operations Management (1498) BS Accountancy 2

    Activity 13
    The weekly demand for a product is 770 units. The standard deviation of daily demand is 10 units. The
    firm reviews its inventory every 28 days. Each order for the product arrives 9 days after placement. At
    the time of review, there are 10 units backorder. If 95 percent of all demand is to be satisfied from items
    in stock:

    a) How many units should be the safety stock?

    SS=zσ d √ T + L

    SS=1.64 ×10 √ 28+9


    SS=99.757305≈ 100 units

    b) What’s the product’s inventory status?

    Inventory Status=On Hand +OnOrder−Backorder


    Inventory Status=0+0−10
    Inventory Status=−1 0units

    c) How many units should be ordered for this period?

    q=d ( T + L ) + SS−I
    q=10 ( 28+9 )+100−(−10)
    q=370+100+10 ¿
    q=3 90 units

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