Supply chains using the order-up-to inventory model, Operation Management

Demand for Caruso's Frozen Pizza (CFP) is normally distributed. The demand for CFP averages 400 per day with a standard deviation of 200. Weekly demand (5 days) averages 2,000 units with a standard deviation of 555. A Cold can essentially order any quantity of CFP it wants each day. Any order for CFPs arrives 4 days after the order. Further, it costs ACold $0.01 per day to keep a CFP in inventory, while a back order is estimated to cost ACold $0.45.

A.    Suppose the base stock level 2,800 is chosen. What fraction of customer demands is met immediately from stock?

B.     Suppose the base stock level 2,800 is chosen. What is the average amount of inventory on order?

C.     Suppose the base stock level 2,800 is chosen. What is the annual holding cost? (Assume 260 days per year)

D.    What base stock level minimizes inventory while maintaining a 97 percent in-stock probability

Posted Date: 2/16/2013 7:09:21 AM | Location : United States







Related Discussions:- Supply chains using the order-up-to inventory model, Assignment Help, Ask Question on Supply chains using the order-up-to inventory model, Get Answer, Expert's Help, Supply chains using the order-up-to inventory model Discussions

Write discussion on Supply chains using the order-up-to inventory model
Your posts are moderated
Related Questions
What due diligence should be performed before signing a contract?

Briefly explain the management implications of information technology

What are some practical limits to economies of scale?

"Malcolm Baldrige National Quality Award" Please respond to the following Discuss the standout features of the companies approaches to managing operations. Discuss the attribute

Factors Affecting Productivity Improvement  As has already been stressed, productivity improvement is not simply concerned with finding ways of making people work harder, nor

Explain work breakdown structure. Why do resource constraints affect project results?

1. Discuss the advantages and disadvantages of diversity in the work place 2. Discuss some of the legal guidelines in place to protect diversity in the workplace 3. Identify

Matthew Yachts, located in Montauk, Long Island, manufactured sailing yachts of all descriptions. The company had begun by building custom-designed yachts for a largely New York-ba

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