Find the optimal quantity and period for this problem

Assignment Help Operation Management

Reference no: EM13230021

A large supplier of electronic components has decided to control the inventory of a certain item by a periodic review, order up to R policy. The mean demand rate for this item is 500 units per year. The lead time ? is nearly constant at three months. The demand in the time ? + T can be represented by a normal distribution with mean 500 (? + T) and the variance 800(? + T). The cost of each unit is $10, the inventory carrying cost rate is 0.10, the cost of making a review and placing an order is $15, and the cost of backorder is estimated to be $30. Find the optimal quantity and period for this problem.

Reference no: EM13230021

Questions Cloud

Obtain the magnitude spectrum in one period : For the following signal x[n] = ( 1 0 n 4 0 otherwise (a) Compute its spectrum following the definition of the Fourier transform. (b) Obtain its magnitude spectrum in one period . Note: pay attention to that the magnitude must be positive.

Compare and contrast the theories of scientific management : Compare and contrast the theories of scientific management with that of the human relations management approach.

Show market leadership in purchasing and supply management : Evaluation of the various organizations that are benchmarks in purchasing and supply management, and their best practices. Provide specific examples of companies who show market leadership in purchasing and supply management.

How do projects drive accountability : How do projects drive "accountability"? Why would managers fear this particular terminology?

Find the optimal quantity and period for this problem : The cost of each unit is $10, the inventory carrying cost rate is 0.10, the cost of making a review and placing an order is $15, and the cost of backorder is estimated to be $30. Find the optimal quantity and period for this problem.

How effective are actions by project managers : How effective are actions by project managers (or individuals in other business leadership positions) in accomplishing company objectives?

What state or states could abc freightways file the lawsuit : ABC Freightways maintained its principal place of business in Arkansas. However, they provided trucking services in all states west of the Mississippi River, which included the State of Kansas.

Diagram a complex system : Diagram a complex system (a series of causal loops and their interconnections) for the ecosystem of your choice (desert, rainforest, tidal marsh, etc.).

How effective are actions by project managers : How effective are actions by project managers (or individuals in other business leadership positions) in accomplishing company objectives?

User Account

All Pages