Estimate long-run mean monthly cost by means of ci

Assignment Help Mathematics
Reference no: EM131620444

Question: A very large mining operation has decided to control the inventory of high-pressure piping by a "periodic review, order up to M" policy, where M is a target level. The annual demand for this piping is normally distributed, with mean 600 and variance 800. This demand occurs fairly uniformly over the year. The lead time for resupply is Erlang distributed of order k = 2 with its mean at 2 months. The cost of each unit is $400. The inventory carrying charge, as a proportion of item cost on an annual basis, is expected to fluctuate normally about the mean 0.25 (simple interest), with a standard deviation of 0.01. The cost of making a review and placing an order is $200, and the cost of a backorder is estimated to be $100 per unit backordered. Suppose that the inventory level is reviewed every 2 months, and let M = 337.

(a) Make five independent replications, each of run length 100 months, to estimate long-run mean monthly cost by means of a 90% confidence interval:

(b) Investigate the effects of initial conditions. Calculate an appropriate number of monthly observations to delete to reduce initialization bias to a negligible level.

Reference no: EM131620444

Questions Cloud

Review the data and briefly explain the data sheet : EDUC 9400 - Advanced Data Analysis Assignment. Review the data and briefly explain the data sheet. Take note of how the variables are coded
Preparing to launch new product in new market : Hebac Co is preparing to launch a new product in a new market which is outside its current business operations.
Explain difference between system hazard and system safety : Explain in detail the difference between a system hazard and a system safety constraint. Please provide at least one scenario to support your explanation.
Ethical principles of psychologists and code of conduct : Ethical Principles of Psychologists and Code of Conduct - discuss how you will ensure that all aspects of your doctoral research, from literature review to conducting research
Estimate long-run mean monthly cost by means of ci : A very large mining operation has decided to control the inventory of high-pressure piping by a "periodic review, order up to M" policy.
What futures position might you consider taking : Suppose that you are an investment manager with a large portfolio of technology-oriented stocks. What futures position might you consider taking?
Overall cost of debt is the weighted average implied : Assume that the overall cost of debt is the weighted average implied by the two outstanding debt issues.
Compare system goal and system hazard element of stamp model : Compare and contrast the following three elements of the STAMP model: system goal, system hazard, and system safety constraint.
Explain the same training as another student : What training would you suggest for an employee who has been assigned to the Middle East on a new project

Reviews

Write a Review

Mathematics Questions & Answers

  What is the radius of the waters surface

At what rate is the water level changing when the water is 8 m deep? What is the radius r of the water's surface when the water is y m deep? At what rate is the radius r changing when the water is 8 m deep?

  Find trial control limits for and r charts and plot the data

The copper content of a plating bath is measured three times per day, and the results are reported in ppm. Theand r values for 25 days are shown.

  Replacement marketing campaign that you believe

Write a 750 word paper describing a marketing campaign that you believe to be unsuccessful. Provide a replacement marketing campaign that you believe would be more effective for that target market and provide detailed support.

  Find the slope and intercepts

Find the slope and intercepts. If necessary, round all answers to 2 decimal places.

  State what is the distance from a to b

The Distance from B to C is 6 miles more than twice the distance from A to B The distance from A to C s 2 miles more than four times the distance from A to B what is the Distance from A to B?

  Define the scope statement for a project

Using the information below, plot out a full project Gantt chart and identify the critical path. How many days does it take to complete the project? What would you need to consider when developing a project budget?

  How many of the cables are expected to have a strength

If the cables to be delivered are selected at random, how many of the cables are expected to have a strength less than 1910 pounds?

  List the amounts of energy an electron gun must transmit

Concern the way in which color is specified for display in computer graphics. A color on a computer screen is encoded by three numbers (R, G, B).

  Buyers have most of the bargaining power

Identify an industry in which the suppliers have strong bargaining power and another industry in which the buyers have most of the bargaining power.

  Assignment-prepare a mock concept paper

Write your mock Concept Paper using the Concept Paper template found in the Dissertation Center. Follow the template guidelines for each section.

  Calculate the sample proportion

Calculate the sample proportion, µ for the proportion of offspring peas with yellow pods.

  Collaborative research

Choose a leading Arab or Muslim historical figure preferably from the field of Mathematics. You will then be required to do some collaborative research on his life, main accomplishments and his contribution or significance to our lives today.

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