The Recently Hired Floor Manager at the Local Store of a National

question 46

Essay

The recently hired floor manager at the local store of a national home improvement chain is studying their inventory system.He has chosen patio blocks to be the first item examined.The historical supply and demand data for this item has indicated a constant lead time of 16 days.Demand per day (d) is normally distributed with a mean demand of 2000 per day and standard deviation of 240 per day.He plans to set the service level at 90% during lead time.
a.What is the average demand during lead time?
b.What is the amount of safety stock of blocks he should keep on hand?
c.What is the order point he should use?

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Definitions:

Provincial Tax Brackets

These are income range segments established by provincial governments in Canada, where each range is taxed at a specific rate, affecting how much income tax a person pays based on their income.

Tax Difference

The variation between tax treatments in different scenarios or jurisdictions, often affecting financial decisions and outcomes.

Free Cash Flow

Another name for cash flow from assets.

Cash Flow From Assets

The total amount of money being transferred in and out of a company from its operational, investing, and financing activities.