Find the optimum order quantity and reorder point consistent

Assignment Help Operation Management

Reference no: EM133441367

Problem : Demand for vanilla ice cream at a small ice cream shop can be approximated by a Normal distribution with a mean of 21 litres per week and a standard deviation of 3.5 litres per week. The ice cream is purchased from an ice cream producer. The store manager desires a lead time service level of 90 pement. He has estimated the holding cost per litre to be $0.1 per year and the cost of order to be $5. Lead time from the producer is two days. The store is open seven days a week. Find the optimum order quantity and reorder point consistent with the desired lead time service level

Reference no: EM133441367

Questions Cloud

Explain how each type of weakness tends to occur : Imagine that you are going to lead a decision-making team that includes people from different areas of specialization, and you want to avoid the types

Limitations of digital marketing : Explain what is methodology (primary and secondary research) and Explain what is qualitative and quantitative research and what are the limitations?

Do you think limit the size and growth of the population : What factors do you think limit the size and growth of the population you chose? Why.

What provided the impetus for change : What were they doing to address them at this time? What provided the impetus for change?

Find the optimum order quantity and reorder point consistent : The store is open seven days a week. Find the optimum order quantity and reorder point consistent with the desired lead time service level

What makes the global marketing : What makes the global marketing of your selected product / brand so successful? 2. Do you think your selected company's strategy makes sense

Running the business from the palm of your hand : Identify the problems that businesses in this case study solved by using mobile digital devices.

How changes in income tax affect demand-supply in economy : How changes in income tax affect the demand and supply in the economy? Use examples to illustrate your answer.

Assess the approximate proportions of frederic time : Assess the approximate proportions of Frederic's time that is spent on long-term and on short-term issues. Do think this is typical of operations managers

User Account

All Pages