What would you recommend as an eoq

Assignment Help Project Management

Reference no: EM131177650

Deep Six Seafood, a restaurant that is open 360 days a year, specializes in fresh Maine lobsters at a cost of $10 each. Air freight charges have increased significantly, and it now costs Deep Six $48 to place an order. Because the lobsters are shipped live in a saltwater tub, the order cost is not affected by order sizes.The cost to keep a lobster alive until needed runs about $0.02 per day.

The demand for lobsters during the 1-day lead time is as follows:

Lead-Time Demand	Probability
0	.05
1	.10
2	.20
3	.30
4	.20
5	.10
6	.05

a. Deep Six would like to reconsider its order size. What would you recommend as an EOQ ?

b. The Maine distributor is willing to give Deep Six a $0.50 discount on each lobster if orders are placed in lots of 360 each. Should Deep Six accept this offer?

c. If Deep Six insists on maintaining a safety stock of 2 lobsters, what is the service level?

Reference no: EM131177650

Questions Cloud

Describe the major labor-management interactions : Describe the major labor-management interactions: organizing, contract negotiations, and contract administration. Specifically discuss: reasons why employees may join unions, the different types of unions, the negotiation process from a labor and ..

Identify the ethical code number and definition : Discuss the ethical issues presented in this scenario; identify the ethical code number and definition. Describe the limits of confidentiality that must be considered.

What type of leadership style would be best for him : How would you deal with this situation? How could you motivate him? What type of leadership style would be best for him? Compare and contrast one content and one process theory of motivation. In your opinion, why would two people with similar abili..

Describe relationship of sallys demand for food and income : Describe the relationship between Sally's demand for food and Sally's income, the price of food and the price of clothing.

What would you recommend as an eoq : Deep Six would like to reconsider its order size. - What would you recommend as an EOQ ?- If Deep Six insists on maintaining a safety stock of 2 lobsters, what is the service level?

Find a matching of maximum cardinality in a given graph g : The maximum matching problem is to find a matching of maximum cardinality in a given graph G. Express any instance of this problem as an instance of 0/1-LP.

Defined discrete and continuous variables : The color of a car will then become a random variable. You have defined discrete and continuous variables. So, if our variable is likely snowfall on a given day, what type of variable will it be?

Find an infinite set of input instances of max-sat : Find an infinite set of input instances of MAX-SAT for which the expected solutions computed by RSAM are better than the expected solutions computed by RRR.

Estimate the average approximation ratio : Implement the algorithm COMB and test it for real MAX-SAT instances. Try to estimate the average approximation ratio with respect to your input data.

User Account

All Pages