Compute the optimal quantity and period for this problem, Operation Management

Assignment Help:

A large supplier of electronic components has decided to control the inventory of a certain item by a periodic review, order up to R policy. The mean demand rate for this item is 500 units per year. The lead time? Is nearly constant at three months. The demand in the time? + T can be represented by a normal distribution with mean 500 (? + T) and the variance 800(? + T). The cost of each unit is $10, the inventory carrying cost rate is 0.10, the cost of making a review and placing an order is $15, and the cost of backorder is estimated to be $30. Find the optimal quantity and period for this problem.


Related Discussions:- Compute the optimal quantity and period for this problem

Explain is not one of the three types of specifications, Which of the follo...

Which of the following is not one of the three types of specifications discussed in the text? Answer Design specifications Material specifications Performance specifica

Explain a marketing plan, You have a novel product idea and a working proto...

You have a novel product idea and a working prototype for floating fishing pliers. You use an extrusion process to manufacture the pliers, and your family assembles them out of you

Determine how a contract is enforceable, Having a clear understanding of th...

Having a clear understanding of the courts and where to file specific claims has provided your department with a good basis for where to start when a claim arises. With so many out

Explain toyota and the recalls, Discuss why organizations need to have the ...

Discuss why organizations need to have the correct performance metrics to drive quality. Think of examples in the news and their outcomes. For example: • Toyota and the recalls • B

Wlan standard is compatible with what other wlan standard, The 802.11g WLAN...

The 802.11g WLAN standard is compatible with what other WLAN standard? a. Bluetooth b. 802.11a c. 802.11b d. HomeRF

Explain how should you respond to the reporter, A manager at an architectur...

A manager at an architectural firm receives a call from a local newspaper. The reporter wonders how the firm wishes to respond to calls from two of its employees alleging racial di

Process capability - statistical process control, Process Capability - Stat...

Process Capability - Statistical Process Control The controls charts described so far are concerned with maintaining the stability of a process, but they offer no comment on

Explain what forecast is the most accurate, Data collected on the monthly d...

Data collected on the monthly demand for lawn mower at Azaka Gaarden Supply are shown in the following table Period Demand for lawn mower January 10 February 12 March 18 April 16 M

How is the supply chain cake industry by applying stages, How is the supply...

How is the supply chain cake industry by applying stages? The supply chain cake industry by applying stages as by given factors: • Farmer as like producer of commodities as

Master production scheduling, Master Production Scheduling The master s...

Master Production Scheduling The master schedule ( or master production schedule of MPS) sets the quantity of each end item (finished product) to be completed in each time peri

Write Your Message!

Captcha
Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd