Never used more than 3 cases per day though average mentioned is 2 cases per day
ID: 373765 • Letter: N
Question
Never used more than 3 cases per day though average mentioned is 2 cases per day. Orders are placed to vendor every three days and it takes vendor 2 days to deliver.
In other words, average demand is 2cases, lead time is 2 days, orders are placed every three days.
Average lead time demand is 4 cases (2*2) whereas the average demand for three days period is 6 cases.
Therefore it may be stated that level of safety 9In excess of lead period demand) is 2 cases.
In reality from above it is clear that Replenishment time is three days.
In the absence of other details, initial buffer size may be Average for three days demand plus one case (or safety stock).
1 2 3 4 5 6 7 8 9 order placed order placed order placed order received order received order receivedExplanation / Answer
c) You manage a Pizza parlor that is open 7 days a week. One of your responsibilities is to manage inventory. Historically, you’ve NEVER used more than 3 cases of pizza sauce per day (though it averages 2). You place orders to your vendor every three days and it takes that vendor 2 days to get what you’ve ordered to your restaurant. Show your calculations and state what your Time to be Reliably Replenished is. [+2 pts.]d) What would the appropriate initial buffer size be with the data you’re given in 5c? [+2 pts.] c) You manage a Pizza parlor that is open 7 days a week. One of your responsibilities is to manage inventory. Historically, you’ve NEVER used more than 3 cases of pizza sauce per day (though it averages 2). You place orders to your vendor every three days and it takes that vendor 2 days to get what you’ve ordered to your restaurant. Show your calculations and state what your Time to be Reliably Replenished is. [+2 pts.]
d) What would the appropriate initial buffer size be with the data you’re given in 5c? [+2 pts.] c) You manage a Pizza parlor that is open 7 days a week. One of your responsibilities is to manage inventory. Historically, you’ve NEVER used more than 3 cases of pizza sauce per day (though it averages 2). You place orders to your vendor every three days and it takes that vendor 2 days to get what you’ve ordered to your restaurant. Show your calculations and state what your Time to be Reliably Replenished is. [+2 pts.]
d) What would the appropriate initial buffer size be with the data you’re given in 5c? [+2 pts.]