Determine economic order quantity-compute risk of stock

Assignment Help Operation Management

Reference no: EM132245616

A small copy center uses 5 500-sheet boxes of copy paper a week. Experience suggests that usage can be well approximated by a normal distribution with a mean of 5 boxes per week and a standard deviation of .50 boxes per week. 2 weeks are required to fill an order for letterhead stationery. Ordering cost is $5, and annual holding cost is 35 cents per box. Use Table. a. Determine the economic order quantity, assuming a 52-week year. (Round your answer to the nearest whole number.) EOQ 86 boxes b. If the copy center reorders when the supply on hand is 11 boxes, compute the risk of a stockout. (Round "z" value to 2 decimal places and final answer to 4 decimal places.) Risk c. If a fixed interval of 7 weeks is used for ordering instead of an ROP, how many boxes should be ordered if there are currently 25 boxes on hand, and an acceptable stockout risk for the order cycle is .0228? (Round "z" value to 2 decimal places and final answer to the nearest whole number.)

Reference no: EM132245616

Questions Cloud

Create horizontal conflict : Is the practice of having more than one distributor in one region unethical? Perhaps not, but it does create HORIZONTAL CONFLICT.

Competitive pizza chains : Pizza King (PK) and Noble Greek (NG) are competitive pizza chains. what price should PK charge for a pizza?

What are the main categories of forces and trends : Full Description: What is a SWOC analysis? Why would it be important to understand? Why would it be important to understand external environmental assessments?

What is the companies overarching goals : Research the company's HR website for internally and externally disseminated documents, mission and vision statements, and the company's core competencies.

Determine economic order quantity-compute risk of stock : Determine the economic order quantity, assuming a 52-week year. compute the risk of a stock out.

Discuss the rising costs of care and its components : Discuss the major issues faced by the U.S. healthcare system. Discuss the rising costs of care and its major components.

How you will implement hris using one of the change models : Determine how you will implement the HRIS using one of the change models discussed in our text. Create a project management roadmap for the client.

Who is responsible in your organization for diversity : Discussion 2: Pick a US company. Who is responsible in your organization for diversity and inclusion? Do you think they are doing a good job? Why or why not?

Determine the order quantities for cycles : Determine the order quantities for cycles 1, 2, and 3: (Round your answers to the nearest whole number) Cycle Units 1 2 3.

User Account

All Pages