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Q. Given this information: Expected demand during lead time 300 units Standard deviation of lead time demand 30 units Determine each of subsequent, assuming that lead time demand is distributed normally:
a. ROP that will provide a risk of stock out of 1 percent during lead time.
b. safety stock needed to attain a 1 percent risk of stock out during lead time.
c. Would a stock out risk of 2 percent require more or less safety stock than a 1 percent risk? Explain.
Would ROP be larger, smaller or unaffected if acceptable risk were 2 percent instead of 1 percent? Explain.
The unit-manufacturing costs for producing the different parts at the four plants are shown in the subsequent table. Explain how should Ho assign the new products to the plants to minimize manufacturing costs.
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A furniture company manufacture desk and chairs. . Given that the profit per chair is $50 and that of the desk is $100, determine the optimal production mix for the company.
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Suppose that management of Mytrle Air express believes that the probability of weak demand is 0.70. and the probability of weak demand is 0.3. Use the expected value approach to determine an optimal decision.
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Suppose which daily usage is normal also which it has a standard deviation of 1.5 gallons per day. Elucidate what ROP is appropriate if the acceptable risk of a stock out is 2 %.
The standard deviation of lead time is 1.5 days. Assume 260 days in the year and an average lead-time of 6 days. Illustrate what is the EOQ.
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Illustrate what are differences between tangible also intangible resources. Why is it important for decisions makers to understand these differences.
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