How to find the order quantity, Operation Management

Assignment Help:

The supplier is reliable and maintains a constant lead time of 5 days. The cost of placing an order is $10 and the cost of holding inventory is $0.50 per unit per year. There are no stock-out costs, and unfilled orders are filled as the order arrives. Assume sales occur over 360 days of the year.

Your goal here is to find the order quantity and reorder point to satisfy a 90 percent probability of not stocking out during the lead time.

a. to manage inventory, the company is using (select one)

b. Find the order quantity

c. find the reorder point


Related Discussions:- How to find the order quantity

Explain project selection, "Project Selection" •For the purpose of completi...

"Project Selection" •For the purpose of completing the requirements of this course, select an actual business or personal project that assumes duration of 15 months and a functiona

Explain lead directly to performance but is moderated, Stephanie the CEO of...

Stephanie the CEO of XYZ Inc., is trying to increase the level of effort and therefore performance in her company. Based on expectancy theory on motivation she knows that effort do

Describe the problem with labour productivity, Two types of cars (Deluxe an...

Two types of cars (Deluxe and Limited) were produced by a car manufacturer in 1997. Quantities sold, price per unit, and labour hours follow. What is the productivity for each car?

Explain optimal solutions to linear programming problems, Optimal solutions...

Optimal solutions to linear programming problems are found under probabilistic assumptions

Explain field of construction management, Discuss how the transformation pr...

Discuss how the transformation process applies to the field of construction management

Trade off between delivery and flexibility, Trade off Between Delivery and ...

Trade off Between Delivery and Flexibility Pagell et al (2000) argue that the trade-off concept is based on Skinner's quandary that a manufacturing plant could not be configur

Explain traditional and horizontal organization structure, Identify the mai...

Identify the main types of traditional and horizontal organization structure. Using an organization of your choice as an example how is the structure of the organization a reflecti

Scope, what are the scope of operation research

what are the scope of operation research

Case analysis, 18 carpets were observed colsely and the number of defects i...

18 carpets were observed colsely and the number of defects in their texture was noted.Draw a control chart for the number of defects no.of.defects: 0 1 2 3 4 5 6 no.of carpets: 0 1

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