Question 1 (1 point) Electric Sheep maintains a customer service center that sto
ID: 366547 • Letter: Q
Question
Question 1 (1 point) Electric Sheep maintains a customer service center that stocks the various replacement parts for Electric Sheep's line of robots. One of the items is a 1 HP electric motor for its large industrial robots. Since this motor is both very expensive and very reliable, the service center orders these motors in lots of 10. Daily demand for this motor avarages 0.1 motors per day with a standard deviation of 0.3 motors per day. The lead time is 30 days and the reorder point in 4 motors. Calculate the customer service level with this inventory plan. 32% 50% 61% 63% 66% 73% 77% 85%Explanation / Answer
lot size
10
motors
daily demand, d
0.1
motors/day
std dev,
0.3
motors/day
Lead time, L
30
days
Reorder point, R
4
motors
Reorder Point, R = d*L+z**sqrt(L)
feeding the values in this formula:
4=(0.1*30)+z*0.3*sqrt(30)
solving for z:
4=3+1.64z
1.64z=1
z=0.61
Finding the corresponding probability from the z table:
Probability
0.729069
=
73%
Ans.: 73%
the customer service level with this inventory plan is 73%.
lot size
10
motors
daily demand, d
0.1
motors/day
std dev,
0.3
motors/day
Lead time, L
30
days
Reorder point, R
4
motors
Reorder Point, R = d*L+z**sqrt(L)
feeding the values in this formula:
4=(0.1*30)+z*0.3*sqrt(30)
solving for z:
4=3+1.64z
1.64z=1
z=0.61
Finding the corresponding probability from the z table:
Probability
0.729069
=
73%
Ans.: 73%
the customer service level with this inventory plan is 73%.