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(Solved) Case Study - Kyle Bits and Bytes Kyle Bits and Bytes, a retailer of computing products sells a variety of computer-related products. One of Kyle's...


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Include answers to the following:

Case 2: Kyle Bits and Bytes

What should be the re-order point? How many HP laser printers should he have in stock when he re-orders from the manufacturer?

Case Study – Kyle Bits and Bytes
Kyle Bits and Bytes, a retailer of computing products sells a
variety of computer-related products. One of Kyle’s most popular
products is an HP laser printer. The average weekly demand is
200 units. Lead time (lead time is defined as the amount of time
between when the order is placed and when it is delivered) for a
new order from the manufacturer to arrive is one week.
If the demand for printers were constant, the retailer would reorder when there were exactly 200 printers in inventory. However,
Kyle learned demand is a random variable in his Operations
Management class. An analysis of previous weeks reveals the
weekly demand standard deviation is 30. Kyle knows if a
customer wants to buy an HP laser printer but he has none
available, he will lose that sale, plus possibly additional sales. He
wants the probability of running short (stock-out) in any week to
be no more than 6%. Expansion Strategy and Establishing a Re-Order Point Write a 500-word
Include answers to the following:
Case 2: Kyle Bits and Bytes
What should be the re-order point? How many HP laser printers should he have in stock when he reorders from the manufacturer?

 


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