The Operations Manager at a Chemical Company That Produces Insecticide

question 36

Essay

The operations manager at a chemical company that produces insecticide for use in commercial applications is attempting to set a safety stock level for a key ingredient that is used in their most powerful product.She believes that demand during lead time for this ingredient is normally distributed based on past data.In addition, she believes that future use is accurately depicted by these historical demand-during-lead-time data (in gallons): 55, 75, 75, 70, 80, 60, 50, 70, 60, and 85.She 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 they need to provide a 95% service level?
c.What is the order point the company should use?

Understand the interplay between state and federal laws in regulating employment benefits and anti-discrimination protections.

Understand the concept of trade discount and calculate the net price and trade discount amount.

Calculate the rate of trade discount.

Compare prices from different sources taking into account trade discounts to determine the least expensive option.

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Definitions:

Upper Class

A social group at the top of a societal hierarchy, characterized by wealth, inherited status, and power.

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The theory that social stratification is functional for society because it ensures that key social positions are held by the most capable people.