Find the average total setup cost and shortage cost, Operation Management

A manufacturer uses a purchase part who's demand over any time period of length t (in years) can assume to be normally distributed with mean 200t and variance 400t. The part cost $20 each. The lead-time is 4 weeks. The annual carrying cost rate is 0.2 $/$/year. All shortages are backlogged and the shortage cost is proportional to the number units short, where the backlogged cost is $16 per unit. The setup cost is $100. A reorder point (s, Q) policy is used. (Assuming 52 working weeks within a year). a) Find the optimal order quantity and the reorder point. b) Find the average total relevant cost (setup cost, inventory holding cost and shortage cost)

Posted Date: 2/8/2014 12:22:02 AM | Location : United States

Related Discussions:- Find the average total setup cost and shortage cost, Assignment Help, Ask Question on Find the average total setup cost and shortage cost, Get Answer, Expert's Help, Find the average total setup cost and shortage cost Discussions

Write discussion on Find the average total setup cost and shortage cost
Your posts are moderated
Related Questions
Define the elements of method study and work measurement. Method study and Work Measurement are elements of Work Study.

Task 1 Read: Chapter 1 of the core learning material and supporting text book chapters which relate to Operations Management. Choose an organisation with which you are either in

1. How could the Plaza Inn develop a collaborative strategy? Develop a specific plan. 2. How could technology help solve the problems at the front desk? Explain what you propose

Ask que Prepare Paul Jordan’s report to John Smithers using regression analysis. Provide a summary of the cell phone industry outlook as part of Paul’s response. stion #Minimum 100

Prepare a SWOT analysis for long-term strategic planning at Sigma Marketing

Can I have a process strategy matrix , which has 5 key performance objectives, people processes, technology and information in one of the accor chain hotel?

How does mobile technology address day-to-day business pressures?

Select a current event and analyze it in terms of events, patterns, and structure

if you expand your existing company by opening a new divition in a foreign country, shouldthe new divistion be staffed by local personnel or by personnel imported from the parent o

After the occurrence of Hurricane Katrina, insurance companies refused to pay claims to insurance holders who paid premiums on time and had binding legal contracts. What do you thi