Estimate r and the number of orders per year that should be

Reference no: EM13608522

Chicago's Treadway Tires Dealer must order tires from its national warehouse. It costs $10000 to place an order and $400 to review the inventor level. Annual tire sales are N(20000, 4000000). It costs $10 per year to hold a tire in inventory, and each oerder arrives two weeks after being placed ( 52 weeks = 1 year). Assume that all shortages are backlogged.

a) Eistimate R and the number of orders per year that should be placed.

b) Using the answer in part (a), determine the optimal (R,S) inventory policy. Assume that the shortage cost is $100 per tire.

Reference no: EM13608522

Questions Cloud

Determine the magnitude of the average friction force : the 3.25-kg collar shown below is attached to a spring and released from rest at a. the collar then travels downward a

Describe the parameter of interest for this analysis : in conjunction with the housing foreclosure crisis of 2009 many economists expressed increasing concern about the level

Santana rey is considering the purchase of equipment for : santana rey is considering the purchase of equipment for business solutions that would allow the company to add a new

Does the partnership really have to reconstitute itself : does the partnership really have to reconstitute itself legally and if so would it be wise to do so without a formal

Estimate r and the number of orders per year that should be : chicagos treadway tires dealer must order tires from its national warehouse. it costs 10000 to place an order and 400

Find sqrtw2 the rms angular speed of the dumbbell about a : consider a rigid dumbell with two masses each of mass m spaced a distance d apart. as a reminder the momentum of

Agler railroad co is about to issue 400000 of 10-year : agler railroad co. is about to issue 400000 of 10-year bonds paying a 9 interest rate with interest payable

In class we discussed what fraction of 7-foot or taller : in class we discussed what fraction of 7-foot or taller males of an appropriate age play in the nba. this exercise

Determine the work done during the process a by plotting : gas with an initial volume of 0.36 m3 is slowly compressed to a final volume of 0.16 m3 by a process during which the

User Account

All Pages