Posted by **Patrice** on Thursday, March 1, 2012 at 11:23pm.

Tax Preparers Inc. works 250 days per year. The company uses adding machine tape at a rate of eight rolls per day. Usage is believed to be normally distributed with a standard deviation of three rolls during lead time. The cost of ordering the tape is $10 and holding costs are $0.30 per roll per year. Lead time is two days.

(a) Calculate the economic order quantity

(Round your answer to 1 decimal place, the tolerance is +/-0.1.)

(b) What reorder point will provide an order cycle service level of 97 percent?

tapes (Round up your answer to the nearest whole number.)

(c) How much safety stock must the company hold to have a 97 percent order-cycle service level?

units (Round your answer to 2 decimal places, the tolerance is +/-0.01.)

(d) What reorder point is needed to provide an order-cycle service level of 99 percent?

tapes (Round up your answer to the nearest whole number.)

(e) How much safety stock must the company hold to have a 99 percent order-cycle service level?

units (Round your answer to 2 decimal places, the tolerance is +/-0.01.)

- Operations management -
**sfg**, Wednesday, April 16, 2014 at 10:18pm
sggg

## Answer This Question

## Related Questions

- statistics - Tax Preparers Inc. works 250 days per year. The company uses ...
- math - You manage inventory for your company and use a continuous review ...
- Statistics - Is this right? and how can I break it down if needed? A factory’s ...
- 12 - A factory’s worker productivity is normally distributed. One worker (worker...
- statistics - A widget factory's worker productivity is normally distributed. one...
- statistics - A factory's worker productivity is normally distributed. One worker...
- M361 - A factory worker productivity is normally distributed. worker A produces ...
- Engineering Economics - Sales of bottled water in the U.S totaled 16.3 gallons ...
- Operations Management - Joe Henry's machine shop uses 2,500 brackets during the ...
- Operations Management - A small grocery store sells fresh produce, which it ...

More Related Questions