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 different levels of diversification firms, What are the different l...

What are the different levels of diversification firms can purpsue by using different corporate level strategies and what are the advantages to diversifying their operations?

Explain which option is more economical, A company is the logistics vendor ...

A company is the logistics vendor for B Company. B has daily shipments of a power-steering pump from its Ohio plant to an auto assembly line in Alabama. The value of the standard s

Explain what is a learning organization?, Q1. What is a learning organizati...

Q1. What is a learning organization? Q2. 1. "JUST DO IT" advertisement for Nike. What is the marketing purpose of this slogan? Is this slogan effective? 2. "DAIMONDS ARE FORE

Industrial society - operations function, Industrial Society - Operations F...

Industrial Society - Operations Function In the industrial society, estimated during the period of growth of industrialisation roughly 1820-1920, machines and the production o

Financial risk, the importance of the measurtement of market risk for finan...

the importance of the measurtement of market risk for financial institution

Write the facultyids of faculty who are not qualified, Using the following ...

Using the following tables (primary keys are underlined), write the expressions that follow in SQL. STUDENT (StudentID, StudentName) FACULTY(FacultyID, FacultyName) COURSE(CourseID

What are the rules of joint venture, Windy City Balloon Port ran a balloon ...

Windy City Balloon Port ran a balloon launching facility in Illinois, offering sightseeing flights in hot-air and helium balloons owned by third parties. Windy City sold tickets fo

Multi-skill staff and multipurpose machinery flexible, How are multi-skill ...

How are multi-skill staff and multipurpose machinery flexible? Multi skilled operatives permit greater flexibility and economies of scope. For example quite than just being a m

Explain team meetings can be helpful, Team meetings can be helpful. Interor...

Team meetings can be helpful. Interorganizational conflict is conflict that arises across organizations. What are sources of conflict?

Explain describe your findings as frequencies, Poll a small sample of class...

Poll a small sample of class members, work associates, or friends and ask them to answer the following in a paragraph or two: "What are your career aspirations for the next five

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