A Product Has a Reorder Point of 260 Units,and Is

question 12

Essay

A product has a reorder point of 260 units,and is ordered ten times a year on average.The following table shows the historical distribution of demand values observed during lead time.
Currently,stockouts are valued at $5 per unit per occurrence,while inventory carrying costs are $2 per unit per year.Should the firm add safety stock? If so,how much safety stock should be added?

Understand the principles and applications of Gantt charts in scheduling.

Grasp the concepts of forward and backward scheduling and their applications.

Know the sequence of scheduling from long-term to short-term and its implications.

Understand the objectives and key decision sequences in scheduling.

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Definitions:

Dependent

Being influenced by another variable, in statistics, refers to the variable whose value is predicted in a regression analysis.

Independent

A condition where the occurrence or value of one variable does not affect or is not associated with another.

Mutually Exclusive

A statistical term describing events that cannot occur simultaneously; the occurrence of one event excludes the possibility of the other.

Events

Occurrences or happenings, often of significance and usually discrete, that can be observed and recorded.