A manufacturer of computer printers that has eight different product models has
ID: 372279 • Letter: A
Question
A manufacturer of computer printers that has eight different product models has historically had eight different printer trays that they used (i.e. each printer model has it's own specific tray design). They have since found a way to use only two different trays - one is used for five of the models, while the other is used in three of the models. Assuming that all models have roughly equal demand (mean and standard deviation), then safety stock under the new tray designs would be _____ % of what it was under the previous designs.
40.0
75.0
50.0
25.0
200.0
Explanation / Answer
Let Safety stock requirement of each of 8 different printer trays = S
Therefore cumulative safety stock requirement of 8 different printer trays = 8.S
When 5 different types of printers are combined to have a single type tray, then safety stock requirement of combined 5 different printers
= S x square root ( Types of printers)
= S X Square root ( 5)
When 3 different types of printers are combined to have a single type tray, then safety stock requirement of combined 3 different printers
= S x Square root ( types of printers )
= S.Square root ( 3 )
Therefore, revised cumulative stock requirement
= S x Square root ( 5) + Sx Square root ( 3)
= 2.236.S +1.732.S
= 3.968.S
Therefore, Revised Safety stock as percentage of original safety stock
= 3.968.S/8.S x 100
= 49.6 % ( 50% rounded to nearest whole number )
NEW TRAY DESIGN WOULD BE 50% OF WHAT IT WAS UNDER THE PREVIOUS DESIGN
NEW TRAY DESIGN WOULD BE 50% OF WHAT IT WAS UNDER THE PREVIOUS DESIGN
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