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

Describe how trade lowers the costs of making computer parts, closing case:...

closing case: Logitech Best known as one of the world's largest producers of computer mice, Logitech is in many ways the epitome of the modern global corporation. Founded in 198

Explain business model and strategies changed overtime, 1. Why has Southwes...

1. Why has Southwest's business model and strategies changed overtime? 2. In what ways is Southwest Trying to improve its competitive advantage in 2011? 3. Give examples of a

Explain define the behaviour of leaders modelling excellence, Describe the ...

Describe the behaviours of leaders modelling excellence. How do you assess excellence and how does that inspire you to perform at higher level?

Ethical organizations are founded through ethical leadership, Discuss how e...

Discuss how ethical organizations are created through ethical leadership and organizational structures and systems.

Describe what is the expected value of perfect information, Director of leg...

Director of legal services of ABC Company must decide whether to hire another full-time lawyer or to hire part-time lawyers. Anticipated costs for the two options under three possi

Explain inatrode produces computer chips, Inatrode produces 4750 computer c...

Inatrode produces 4750 computer chips per day. Each day, a sample of 375 chips is tested for a period of 96 operating hours each. During the test, 3 failed at 15 hours, 5 failed at

Explain ethnocentric, Select an MNE with which you are familiar and determi...

Select an MNE with which you are familiar and determine which staffing approach (ethnocentric, polycentric, geocentric, or regiocentric) would be most beneficial to that enterprise

Explain annualized holding period return on investment, You buy a 5 year bo...

You buy a 5 year bond with a 8% coupon rate, a YTM of 8% and a $80,000 face value. What will your annualized holding period return (HPR) on this investment be if you hold the bond

Explain being fired for sexual harassment, During the course of a day, empl...

During the course of a day, employee Jennifer Anniestown (an accountant) constantly opens and updates her Facebook account on her iPad, checks on her lottery ticket numbers, calls

Make an aggregate plan, Prepare an aggregate plan for the coming year assum...

Prepare an aggregate plan for the coming year assuming that the sales forecast is perfect Use a spreadsheet Bradford Manufacturing in the spreadsheet an area has been designated fo

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