Course Solutions Uncategorized (Answered) : Dyson specializes in repairing vacuum cleaners. Dyson receives weekly deliveries from its vacuum cleaner belt supplier, who r

(Answered) : Dyson specializes in repairing vacuum cleaners. Dyson receives weekly deliveries from its vacuum cleaner belt supplier, who r

June 27, 2024June 27, 2024| adminadmin| 0 Comment| 7:26 pm
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Dyson specializes in repairing vacuum cleaners. Dyson receives

weekly deliveries from its vacuum cleaner belt supplier, who replenishes belts up to a level

that Dyson appliance is free to specify. Dyson buys a very popular belt at a unit price of

$17.50. The annual inventory carrying charge is 20%. Weekly demand for belts is normally

distributed with mean 86 and standard deviation 24. Dyson management wants to limit

the probability of a stock-out on any given week not to exceed 1%.

(a) What replenishment level would you recommend?

(b) What is Dyson’ average level of safety stock?

(c) What is Dyson annual cost of holding cycle stock?

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