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

Questions Cloud

Global collaboration strategy is working : How would you monitor individual and team activity to ensure that your global collaboration strategy is working? Discuss three important factors contributing to successful 360G performance appraisals. How might Vietnam compare to China as a place to ..
Determine the reorder point for data : Harvey Gold, the owner of Harvey's Specialty Shop, orders an unusual olive from the island of Santorini, off the Greek coast. Monthly demand for the olives is normally distributed with mean 15 and standard deviation 6. Harvey is willing to accept no ..
Challenges to setting up a global collaborative network : Considering the challenges to setting up a global collaborative network, give an example of each from the perspective of setting up a global airport construction company with employees on overseas assignments for 2-year periods.
What service level is being achieved : One of the hot sellers for the Wonka Toy store is the Chocolate Factory Board Game. The store uses a periodic review inventory system. The review period for the board game is 1 month, while the lead time to obtain the board game is 1 week. The demand..
Construct one step transition matrix for above process : 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. Construct the one step transition matrix for the above proc..
Store uses a periodic review inventory system : One of the hot sellers for the Wonka Toy store is the Chocolate Factory Board Game. The store uses a periodic review inventory system. The review period for the board game is 1 month, while the lead time to obtain the board game is 1 week. The demand..
What does the program need to offer employees : You are the middle manager of a company, and you recently received news that your company lost a major contract. Such a loss will directly affect your department by reducing the staff by 25%. You have six months before the layoffs take place. What do..
Do some research on international positions : Do some research on international positions that may interest you on a career websites such as Monster.com. Post in the discussion area one of the positions that you think you would be interested in applying to. Explain the approach you will use, suc..
Describe three models multi-national business entity : Describe three "models" a multi-national business entity might employ in conducting operations internationally. What advantage does a multi-national business enterprise gain in having a wholly owned subsidiary conduct business operations beyond the p..

Reviews

Write a Review

Operation Management Questions & Answers

  Book review - the goal

Operations Management is about a book review. Title of the book is "Goal". This book has been written by Dr. Eliyahu Goldartt. The book has been appreciated by many as one of those books which offers an insight into the operations and strategic capac..

  Operational plan in hospitality enterprise

Operational plan pertaining to a hospitality enterprise is given in detail in the solution. The operational plan is an important plan or preparation which gives guidelines regarding the role and responsibilities of each and every operation at all lev..

  Managing operations and information

Recognise the importance of a strategic approach to the development and deployment of organisational information systems. Demonstrate an understanding of the importance of databases and their integration to the organisation's overall information mana..

  A make-or-buy analysis

An analysis of the holding costs, including the appropriate annual holding cost rate.

  Evolution and contributor of operations management

Briefly explain Evolution and contributor of Operations management.

  Functions and responsibilities of an operations manager

A number of drivers of change have transformed the roles, functions and responsibilities of an operations manager over recent years. These drivers have not only been based on technological innovations but also on the need for organisations to develop..

  Compute the optimal order quantity

Compute the Optimal Order quantity of DVD players. Determine the appropriate reorder point.

  Relationship to operations practice in the organisation

Evaluate problems in operations and identify approaches to overcoming them. Critically evaluate operating plans and identify areas for improvement. Justify, implement and evaluate changes to operations in line with modern approaches.

  A make or buy analysis

Develop a report for Figi Fabricating that will address the question of whether the company should continue to purchase the part from the supplier or begin to produce the part itself.

  Prepare a staffing plan

Prepare a staffing plan showing the change of your unit from medical/surgical staffing to oncology staffing.

  Leadership styles in different organizations

Ccompare the effectiveness of different leadership styles in different organizations

  Risk management tools and models

Be able to understand the concept of risk, roles and responsibilities for risk management and risk management tools and models.

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