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
Quantitative Versus Qualitative Measurements A variety of formulae can be used to determine productivity as illustrated. These are generally referred to as 'hard' or quantifia

What might be the most effective way to secure cooperation from one's Union in tailoring Total Compensation to help the company achieve a sustainable competitive business advantage

How might you describe furniture buying using the purchase decision process described in Chapter 5? How might each of the elements of the promotional program influence each stag

The owner of Genuine Reproductions (GR), a company that manufactures reproduction furniture, is interested in measuring inventory effectiveness. Last year the cost of goods sold at

Analyze why it is important to address risk through the entire project life cycle. Identify three possible negative results that can occur if an organization fails to address risk

Expectancy theory claims that motivation is a function of Answer efforts, performance, and rewards. individual traits and supervisory skills. aptitude, training, and op

Create a 10-12 slide presentation describing the data types. Include the following in your presentation? Introductory slide? Slide for each data type (containing a definition of th

Why is it important to continuously update the implementation and communication of a strategic plan? Who should be responsible for updating and communicating a strategic plan? Why?

In what kind of ways did these mangers respond to these challah for example in their approaches to planning leading organizing and controlling?

What is the role of structure query language (SQL) in database object creation and information management in a relational database? Identify three SQL commands that are used for da