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 does anyone have any insight, Does anyone have any insight into Dis...

Does anyone have any insight into Discussion Question, This was not discussed in class.

Discuss what responsibility businesses towards environment, Environment Ple...

Environment Please respond to the following: •From the video, take a position on the ethical aspects of the logging industry on the local economies and the environment in the North

How to find the order quantity, The supplier is reliable and maintains a co...

The supplier is reliable and maintains a constant lead time of 5 days. The cost of placing an order is $10 and the cost of holding inventory is $0.50 per unit per year. There are n

Explain why organizations need good measures, 1. Both Juran and Deming adv...

1. Both Juran and Deming advocated ongoing product development. In fact, Deming's introductory lecture to Japanese managers in 1950 contrasted the old way of product design-desi

Explain interpersonal skills, You work in a new organization. You have been...

You work in a new organization. You have been charged with recruiting a manager for a new department within the Services division. The Vice President of the Services division stres

Explain the role of purchasing, Describe the role of purchasing in contribu...

Describe the role of purchasing in contributing to the profitability of the enterprise

Define a solid business strategy includes, 1.__?__________ are the basic un...

1.__?__________ are the basic unit of analysis and the focus of nonmarket action 2. The market environment of business includes___________.? 3. Firms typically deal with nonm

Explain it projects that should be a part of bill''s it plan, List and desc...

List and describe (in two or three sentences each) three IT projects that should be a part of Bill's IT Plan - one project to support each area and/or process identified in above

Describe does anyone have a screenshot of page, Does anyone have a screensh...

Does anyone have a screenshot of page 91 so that I can do question 3.14? My book has not come in yet and the eBook trail that I have been using does not have that question in it. I

Formulate the subsequent problems, Formulate the following problems:B.7; B....

Formulate the following problems:B.7; B.8; B.10; B.11 and B.17. Do not solve

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