How performing the necessary paperwork, Operation Management

Assignment Help:

Annual demand for number 2 pencils at the campus store is normally distributed with mean 1,000 and standard deviation 250. The store purchases the pencils for 6 cents each and sells them for 20 cents each. There is a two-month lead time from the initiation to the receipt of an order. The store accountant estimates that the cost in employee time for performing the necessary paperwork to initiate and receive an order is $20, and recommends a 22% annual interest rate for determining holding cost. The cost of a stockout is the cost of lost profit plus an additional 20 cents per pencil, which represents the cost of loss of goodwill. a. Find the optimal values of Q and R. b. Substitute a Type 1 service level criterion of 95% for the stock-out cost. Find the values of Q and R. c. Substitute a Type 2 service level criterion of 98% for the stock-out cost. Assume that Q is given by the EOQ. Find the values of Q and R.


Related Discussions:- How performing the necessary paperwork

What is the distinction between prediction and forecasting, Question 1: ...

Question 1: Show the nature and importance of the four logistics-related elements of customer service. Question 2: (a) Describe the concept of supply chain management.

Case study ramada demonstrates its personal best, I have an assignment this...

I have an assignment this week to read "Ramada Demonstrates its Personal Best" on the 'Companion Website.' Do I have access to questions/answers that go along with that?

Explain how many machines should be purchased, Up, up, and away is a produc...

Up, up, and away is a producer of kites and wind socks. Relevant data on a bottleneck operation in the shop for the upcoming fiscal year are given in the following table: Item Kite

Explain what is job evaluation, 1) What is job evaluation? What method(s) o...

1) What is job evaluation? What method(s) of job position evaluation does employer use? Explain why. (Remember, "Job Evaluation" is not the same as "Performance Evaluation.") 2) Wh

Difference between performance and productivity measurement, 1. Explain the...

1. Explain the link between productivity and quality?  2. Who do van Biema and Greenwald (1997) and Drucker (1991) suggest are responsible for the slow growth in service sector

Explain product management offers a host of dilemmas, Product management of...

Product management offers a host of dilemmas and challenges to marketers. What products will give us a competitive advantage? Are the new products we are considering in keeping wit

Disparate impact exists hiring records, If a plaintiff proves that a dispar...

If a plaintiff proves that a disparate impact exists, an organization may then defend its employment by showing validation or _______________. a. business necessity b. hiring recor

Methods used in manufacturing - operation strategy, Methods Used in Manufac...

Methods Used in Manufacturing - Operation Strategy Many of the methods used in manufacturing are just as applicable; however a greater degree of customisation will be required

Calculate the percent change in the labor ratios, A department employs 3 ty...

A department employs 3 types of workers: laborers earning $5 per hour, machine operators earning $9 per hour and maintenance workers earning $16 per hour. For a certain job over 2

Explain global environmental concepts, Consider an international firm you a...

Consider an international firm you are familiar with, and consider what the firm needs to be concerned about when entering a foreign marketplace. Specifically, in terms of the chap

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