Compute the optimal quantity and period for this problem, Operation Management

Assignment Help:

A large supplier of electronic components has decided to control the inventory of a certain item by a periodic review, order up to R policy. The mean demand rate for this item is 500 units per year. The lead time? Is nearly constant at three months. The demand in the time? + T can be represented by a normal distribution with mean 500 (? + T) and the variance 800(? + T). The cost of each unit is $10, the inventory carrying cost rate is 0.10, the cost of making a review and placing an order is $15, and the cost of backorder is estimated to be $30. Find the optimal quantity and period for this problem.


Related Discussions:- Compute the optimal quantity and period for this problem

Imagine this is the only position of its kind organization, Imagine this is...

Imagine this is the only position of its kind in the organization. From this perspective, design a performance appraisal program to assess your job performance.

Which coca-cola products are main likely to lose customers, Some industry a...

Some industry analysts think soft-drink companies should develop products that will bring new customers into the market rather than just creating variants on the old. They warn tha

Who all are stakeholders affected by the stores'' decisions, Neda operates ...

Neda operates a small convenience store in a southern town that has a high tourist draw. After several years of operating the store, Neda has decided to no longer sell tobacco prod

Explain how do these survey methods compare, • Discuss the advantages and d...

• Discuss the advantages and disadvantages of self-administered interviewing, face-to-face interviewing, and telephone interviewing. • What is necessary for the success of each

Explain what is your personal entrepreneurial strategy, 1. Who was Ewing Ma...

1. Who was Ewing Marion Kauffman, what did he do, and what was his philosophy of entrepreneurial leadership? 2. What is the difference between a manager and a leader? 3. Defi

Explain smartphones are more likely to be used more, Considering research: ...

Considering research: Smartphones are more likely to be used more by whites or Hispanic

Operation Management, what are the factors that affect productivity

what are the factors that affect productivity

Describe corruption and bribery, Corruption and bribery are common in some ...

Corruption and bribery are common in some countries. Would you simply avoid locating in such a country, or locate there and deal with it? If the latter, how would you deal with it?

Find what is the minimum unit price, An electronics firm is currently manuf...

An electronics firm is currently manufacturing an item that has a variable cost of $.50 per unit and a selling price of $1.00 per unit. Fixed costs are $14,000 per month. Current d

Describe the terms entity and relationship, Explain the terms entity, relat...

Explain the terms entity, relationship, and attributes. Describe how they are used in a database.

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