Explain 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:- Explain the optimal quantity and period for this problem

Explain what key technological features of sap, What key technological feat...

What key technological features of SAP set it apart from conventional business accounting/planning/control software?

Explain contract governed by common law or the ucc, The paper must be four ...

The paper must be four to five pages excluding title page and reference pages, following APA format. Address all of the following parts of this assignment: Suppose that the F

Why jobs needed to produce the shopping carts, A company that makes shoppin...

A company that makes shopping carts for supermarkets and other stores recently purchased some new equipment that reduces the labour content of the jobs needed to produce the shoppi

Define people to try to justify conduct by the argument, How common do you ...

How common do you think it is for people to try to justify their conduct by the argument that "Everybody's doing it"?

Explain how long is each production cycle, Your company manufactures turbin...

Your company manufactures turbine blades for engines in production batches for each type. For one type of blade, the A39T, you have an annual demand of 10,000 units. It costs you $

Define management information system and its scope, Normal 0 fa...

Normal 0 false false false EN-IN X-NONE X-NONE MicrosoftInternetExplorer4

Describe what is the basic problem causing this conflict, You are the plant...

You are the plant manager at Acme Plastics. You are running two shifts, a day shift and an evening shift. Before the day shift leaves each day, the workers must get an adequate sup

Define older quality improvement programs, Some have argued the Six Sigma p...

Some have argued the Six Sigma programs are merely repackaged versions of older quality improvement programs that originally accompanied TQM initiatives in the 1980s. Present argum

Explain industrial disputes act, Explain Industrial Disputes Act. The I...

Explain Industrial Disputes Act. The Industrial Disputes Act intend at settling disputes between Employer and Employees.

LP, SHAYO & Sons is a canning company in Arusha that currently operates two...

SHAYO & Sons is a canning company in Arusha that currently operates two small canning State Mining Corporation (SMC) is establishing a production plan for the current week at its M

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