So That It Can Get A Volume Discount Kendall Ford Orders 20 F 150 Extended Cab Pickup Trucks Each Time It Places An Ord 1 (50.58 KiB) Viewed 38 times
So That It Can Get A Volume Discount Kendall Ford Orders 20 F 150 Extended Cab Pickup Trucks Each Time It Places An Ord 2 (10.44 KiB) Viewed 38 times
So that it can get a volume discount, Kendall Ford orders 20 F-150 extended cab pickup trucks each time it places an order from the manufacturer. The lead time to receive the trucks is 22 days. The frequency of different demands during the lead time has been 3, 4, 7. 8, 9, 12, and 5 occurrences for demands of 9, 10, 11, 12, 13, 14, and 15 trucks, respectively. Due to the cost of having extra trucks on hand, management has decided it is not cost effective to try to avoid all stock outs during the lead time. They would like to set the order point for the F-150 so that it is out of stock for no more than 30% of the customers who would buy this truck. Kendall Ford should place a new order when how many trucks are left on the lot? How many trucks should they expect to sell during the new lead time? (2.5 MARKS) DDLT Frequency Prob. Service Level (Cu. 3 4 4 7 5 6 6 2 7 1 20 Find:
Find: : A. Order Point for an 80% service level B. Safety Sock
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