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1) Part X is a slow-moving part with the demand distribution given in the table below. Assume that replenishment orders placed for part X at the end of the day are fulfilled by the beginning of the next day. Consider a Q = 3, R = 0 order policy for part X. Assume backorders are possible, and are fulfilled the next day. Demand Probability 0 80% 1 10% 2 10% a. What is the transition matrix for the inventory level of part X (assume the state is measured at the end of the day, after demand is realized and before replenishment is received)? b. What is the average inventory of part X? c. What percentage of the time will there be a backorder for part X? Please solve and show the steps to the solution.
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Dracca's Senior Vice President of Sales, Bob Marley, and one of his sales representatives, Bill Farian, were on a conference call and learned that Dracca's new line of high chairs was going to be recalled the next day.
It is now the end of a review cycle. You are expecting a previously ordered shippment of 520 units to arrive within a week and you physcally have 493 units on hand. Considering the policy you developed in part A nowo, how many, if any at all, shou..
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