Construct one step transition matrix for above process

Assignment Help Operation Management
Reference no: EM131375264

Everett Ltd is a company who sells CNC machines to universities for educational purposes. The company observes the number of CNC machines on its hand (call it i) at the beginning of a month. If at the beginning of a month i ≤ 1, then the company orders 3 - i machines (so, the number of inventories is completed to 3). If i ≥ 2, then 0 machines are ordered. It is known that delivery of all ordered machines is immediate. The customers are equally likely to demand 0, 1, 2, or 3 machines from Everett Ltd. during the month. After fulfilling these demands, the company observes the inventory level at the beginning of the next month.

a) Construct the one step transition matrix for the above process.

b) What proportion of time no inventories exists (0 units) on hand at the beginning of a typical month?

c) Assume that there is a shortage cost of $1000 per machine for each demand that is not met by Everett Ltd. during a month. What is the expected amount of this shortage cost for a month?

Reference no: EM131375264

Nondurable goods industrial products

Generally, consumer goods are either ________ or ________. durable goods; nondurable goods industrial products; packaged goods convenience products; staples shopping products;

Draft two separate marketing proposals for the organization

Draft two separate marketing proposals for the organization. Each proposal should be based on a marketing strategy covered in the course. In a separate 6- to 7-page Microsoft

Quality and process evaluation

Haggard Mattresses Haggard Mattresses (HM) is a small, family-owned company whose main production facility is located in Oildale, California. The company produces a range of m

Lettuce should the supermarket purchase tomorrow

The local supermarket buys lettuce each day to ensure really fresh produce. Each morning any lettuce that is left from the previous day is sold to a dealer that resells it to

All public relations efforts should have specific objective

All public relations efforts should have a specific objective. That objective, together with the audience, the message, the element of timeliness, and the budget, should deter

Organizational culture and complex clinical workflows

Why has implementation of information technology in health care and public health been so slow in comparison to other industries? Discuss the relative importance of factors su

How do distinctions between value disciplines

Are long-term objectives helping the enterprise make appropriate strategic choice decisions? How do distinctions between value disciplines, and generic and grand strategies

What is the profit-maximizing quota from the perspective

Suppose Clutch-o-Matic, Inc., has been approached by an automotive company to provide a particular model of clutch on a daily basis. The automotive company needs 1400 clutches

Reviews

Write a Review

 
Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd