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

Explain managers for a large retail department store, Recently the managers...

Recently the managers for a large retail department store stated that a study has revealed that female shoppers spend on average 23.5 minutes longer in the store per visit than do

In detail identify three other supply chain issues, a) Determine the total ...

a) Determine the total cost (purchase price + delivery cost) to make a Blaster unit using these woofer and tweeter components and each delivery combination option? W1 & T1: W2 &

Explain the implications from an operations design, Question: Large ret...

Question: Large retailers, in general, tend to move from a business model characterised by a fragmented network of many small-to-medium scale retail operations located in city

Explain pilot test to generate the variance estimate, If a pilot test revea...

If a pilot test revealed 45% perceived poor service quality, and we decide the interval range is + 10 percent with a 95% confidence level, what is the calculated sample size to con

Explain the service process design, Review the "Noodles and Company - Servi...

Review the "Noodles and Company - Service Process Design" Could Noodles restaurant's service operation be successful by combining the characteristics of the three contrasting servi

What are programmed decisions, What are programmed decisions? Decisions...

What are programmed decisions? Decisions made in accordance with several habit, rule or procedure are termed as Programmed Decisions.

Explain ethical and conflict of interest issues, Public corporations are le...

Public corporations are led by CEOs and other upper-echelon leaders who, in turn report to shareholders and board of directors (BODs). Interestingly, even though the board overseas

Outline the major pros and cons of offer of acquisition, Analyze what the f...

Analyze what the financial manager provided to the management of Comet Skateboards. Imagine a large firm approached Comet Skateboards with an offer of acquisition. Outline the majo

How to determine the capacity requirements, Electronics assembly operates t...

Electronics assembly operates two 8 hours shifts for 275 days per year. Use this information in the table to determine the capacity requirements. Cell Phone Demand forecast (phones

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