Based on these data select the appropriate inventory model

Assignment Help Business Management

Reference no: EM1372897

A local service station is open seven days per week, 365 days per year. Sales of 10W40 grade premium oil average 20 cans per day. Inventory stock costs are $0.50 per can per year. Ordering costs are $10 per order. Lead time is two weeks and Backorders aren't practical-the motorist
drives away.

a. Based on these data select the appropriate inventory model as well as calculate the economic order quantity and reorder point. Define in a sentence how the plan would work. Clue Assume demand is deterministic.

b. The boss is concerned about this model for the reason that demand really varies. The standard deviation of demand was dogged from a data sample to be 6.15 cans per day. The manager needs a 99.5 percent service probability. Conclude a new inventory plan based on this
information and the data in a.

Reference no: EM1372897

Questions Cloud

Foregin country of diversity : Suppose you are going on a 6 month expedition to a foreign country to experience the diversity of this country. A clear differentiation between race and ethnicity

Designing an algorithm for task-array of person numbers : You have been allotted task of designing an algorithm for following task. Someone has built the array of person numbers of all n students enrolled in 331 this fall.

Prepare corporate strategy - strategic management : Check a few of the input factors, indicate why they are important, and relate them to your own organization's situation.

Find the nash equilibrium for the one shot game : In a one shot game, if you promote and your rival promotes, you will earn $7 million and your rival will earn $2 million in profits.

Based on these data select the appropriate inventory model : Based on these data select the appropriate inventory model as well as calculate the economic order quantity and reorder point. Define in a sentence how the plan would work.

American culture-diffusion and cultural relativism : In general, sociology is the systematic study of human groups and social behavior. As an individual, part of the overall human group and society, you will assert your focus on learning a sociological perspective of the dynamics of societies.

Subsequent recruitment messages is appropriate : Which of the subsequent recruitment messages is appropriate? Use of a targeted message when appealing to the broad labour market. Use of a realistic message when recruiting individuals with a lot of job experience

Show bounded awareness : how has bounded awareness prevented you from making a good decision in your business - Show Bounded Awareness

Describe the meaning of a nash equilibrium : Describe the meaning of a Nash Equilibrium when companies are competing with respect to price. Explain why is the equilibrium stable?

User Account

All Pages