Supply chains using the order-up-to inventory model, Operation Management

Assignment Help:

Demand for Caruso's Frozen Pizza (CFP) is normally distributed. The demand for CFP averages 400 per day with a standard deviation of 200. Weekly demand (5 days) averages 2,000 units with a standard deviation of 555. A Cold can essentially order any quantity of CFP it wants each day. Any order for CFPs arrives 4 days after the order. Further, it costs ACold $0.01 per day to keep a CFP in inventory, while a back order is estimated to cost ACold $0.45.

A.    Suppose the base stock level 2,800 is chosen. What fraction of customer demands is met immediately from stock?

B.     Suppose the base stock level 2,800 is chosen. What is the average amount of inventory on order?

C.     Suppose the base stock level 2,800 is chosen. What is the annual holding cost? (Assume 260 days per year)

D.    What base stock level minimizes inventory while maintaining a 97 percent in-stock probability


Related Discussions:- Supply chains using the order-up-to inventory model

Explain how will learning managerial problem solving help, How will learnin...

How will learning managerial problem solving help you later in life in you job?

Design an appropriate control chart, This assignment requires you to look i...

This assignment requires you to look in some detail at one quality issue arising in your organisation. Some of the exercises in Units 4 and 5 have already suggested that you consid

Define the temporal flexibility workforce, Define the temporal flexibility ...

Define the temporal flexibility workforce. Temporal flexibility can be accomplished by varying the hours worked through employees within response to changes into demand for

Explain what additional steps should the quality assurance, A quality analy...

A quality analyst wants to construct a sample mean chart for controlling a packaging process. He knows from past experience that the process standard deviation is two ounces. Each

Implementation of policies in your business strategy, What processes do MNC...

What processes do MNCs need to establish in order to reduce prosecution risk? Many MNCs have decided to confront concerns about ethical behavior by developing worldwide practices t

Explain co-worker whose job performance is superior, Spencer just learned t...

Spencer just learned that his salary is $10,000 more than a co-worker whose job performance is superior to his. Equity theory would predict that Spencer would do any of the followi

Compute the overall proportion of tourists, A state department of tourism a...

A state department of tourism and recreation collects data on the number of cars with out-of-state license plates in a state park. (The group's position is that more out-of-state p

Describe how you determine others capabilities, AS leaders assess the capab...

AS leaders assess the capabilities of the team members two questions must be answered to determine how to organize work. 1 can the person do the job? 2 will he/she take responsibil

Explain major components of information management, Discuss the five (5) ma...

Discuss the five (5) major components of information management / information technology (IM / IT) governance with a focus on how they will collectively improve the quality of heal

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