Keith, an Operations Manager at a Chemical Company Is Attempting

question 73

Essay

Keith, an operations manager at a chemical company is attempting to set a safety stock level for a key ingredient that is used in their most powerful insecticide product. He believes that demand during lead time for this ingredient is normally distributed based on past data. In addition, he believes that future use is accurately depicted by these historical demands during lead-time data (in gallons): 55, 75, 75, 70, 80, 60, 50, 70, 60, and 85. He estimates the standard deviation of demand during the lead time to be 8.5 gallons.
a.What is the average demand during the lead time for this key ingredient?
b.What is the safety stock needed to provide a 95 percent service level?
c.What is the reorder point the company should use?

Calculate the total cost to be accounted for in a cost reconciliation report.

Understand the concept of process costing system and its application in manufacturing.

Calculate total cost to be accounted for in a cost reconciliation report.

Determine equivalent units for materials and conversion costs using the first-in, first-out (FIFO) method.

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Definitions:

Surface Traits

Observable qualities or characteristics of an individual's personality that can easily be inferred from behavior, as opposed to deeper, less observable traits.

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Traits that describe an individual's consistent patterns of thought, feeling, and behavior.

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Traits that describe our motivations and interests.

Temperament

Innate aspects of an individual's personality, such as sensitivity, mood, activity level, and emotional reactivity.