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
what happens if line balancing does not exist

In your opinion do you think Tort Reform will benefit the patients or the medical practitioners? How will this change effect medical institutions?

Base on the case study: Weldon Hand Tools; Design a layout for the assembly operation (to include the fly press work) including the tasks to be performed at each part of the system

Breakeven Problem 1. Avila Manufacturing plans to increase capacity by adding new equipment. They have received two proposals. Fixed CostVariable Cost/Unit Proposal A $32,

As a project manager was primarily to make sure that project is done on schedule and under budget. Although these functions are very important, BRIEFLY mentioned what other functio

Are the following objective functions for an LP model equivalent? That is, if they are both used, one at a time, to solve a problem with exactly the same constraints, will the opti

You are consulting with a company that is failing. It seems the CEO (recently fired) paid no attention to the board of directors. He was also heard to say, "I don't serve stockhold

how does it affect ones business

A company has developed a project and is interested in accelerating the schedule if possible. Below network diagram and tables show all information needed. Partial crashing is avai

Under what circumstances is a code of ethics most and least likely to be effective? Why?