Optimal number of hypodermic needles to obtain per order

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Reference no: EM132241346

1. Consumption of Mug Beer at a local tavern is known to be normally distributed with a mean of 150 bottles per day and a standard deviation of 10 bottles per day. Delivery time is also normally distributed with a mean of six days and a standard deviation of one day. How many bottles of Mug should be on hand at re-order time in order to be 90 percent sure (z value 1.29) of not running out before delivery arrives?

2. Sharp, Inc., a company that markets painless hypodermic needles to hospitals, would like to reduce its inventory cost by determining the optimal number of hypodermic needles to obtain per order. In addition, Sharp, Inc. has a 250 day working year and wants to find the number of orders and the expected time between orders? The annual demand is 1000 units and the set up cost or ordering cost is 10 $ per order and the holding cost per unit per year is 0.50 $. 3.

Reference no: EM132241346

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