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
2. Inez Garcia was born in Portland, Oregon. Her mother is from Italy and Jewish. Her father is Mexican. Under the Guidelines on Discrimination Because of Religion or National Orig

Question: A company has to make product deliveries from one of its four warehouses to customers in three areas. The table below shows the transportation costs (Rs) per product,


process flow and layout flows are at the core of lean manufacturing, do you agree or disagree?

Electronic data interchange relies on   Structured data and standard business documents.

Measurement of customer engagement through the feedback process helps the organization in all of the following EXCEPT- discover customer perceptions of how well the organization

1) Discuss the various ways HR supports managers. 2) Discuss the difference between the focus on Affirmative Action and the focus on equality. 3) Discuss two of the protected class

This post should be at least 200 words in length. Select one of the following approaches to understanding or implementing organizational change. Summarize this approach. Provide

Can someone PLEASE help get me started... Theories of management originated in the early 1900's. They have influenced how we view management today. By Wednesday, February 20, 2013,

Complete a SWOT analysis for McDonald's to include SO, WO, ST, and WT Strategies, then develop a SPACE matrix for McDonald's. Using these matrices, draw conclusions regarding both