How many units should andre order each time

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Reference no: EM13508313

1) Given the pipeline fluid flows indicated below, determine the maximum flow from Node 1 to Node 5.

 

From

Node

To

Node

Fluid

Flow

1

1

2

300

2

2

1

0

3

1

3

0

4

3

1

150

5

1

4

200

6

4

1

200

7

1

5

100

8

5

1

100

9

2

4

200

10

4

2

200

11

3

4

250

12

4

3

300

13

3

5

300

14

5

3

250

15

4

5

100

16

5

4

0

2. Two models of a product - Regular (X) and Deluxe (Y) - are produced by a company.  A linear programming model is used to determine the production schedule.  The formulation is as follows:

                        Maximize profit = 50X + 60Y

                        Subject to:               8X + 10Y <= 800 (labor hours)

                                                           X + Y<= 120 (total units demanded)

                                                           4X +10Y<= 500 (raw materials)

                                                           X, Y >= 0

            The optimal solution is X=100, Y=0.

            Which of these constraints is redundant?

2.  Given that the MAD for the following forecast is 2.5, what is the actual value in period 2?

Period

Forecast

Actual

1

100

95

2

110

 

3

120

123

4

130

130

3. Andre Candess manages an office supply store. One product in the store is computer paper.  Andre knows that 10,000 boxes will be sold this year at a constant rate throughout the year. There are 250 working days per year and the lead-time is 3 days. The cost of placing an order is $30, while the holding cost is $15 per box per year. How many units should Andre order each time to minimize his annual inventory cost?

4. Demand for a product is constant, but the lead time fluctuates. The demand during the lead time is normally distributed with a mean of 40 and a standard deviation of 4.  If they have calculated a reorder point of 45.12 units, what service level are they assuming?

Reference no: EM13508313

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