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 server used as a firewall, Which of the following could not be used...

Which of the following could not be used as a fire wall? a. hub b. router c. server d. PC

Policies that contribute and relate main business objectives, How can a fir...

How can a firm's security policies contribute and relate to the six main business objectives? Give examples.

Explain what factors make up strategic process, Discuss the following quest...

Discuss the following questions in relation to strategic management: • What factors make up this process? • How important is it to change, and what criteria determine the cha

Explain how effective are actions by project managers, Provide two examples...

Provide two examples of current leaders and describe how they demonstrate their leadership characteristics. What separates these characteristics from management techniques? How eff

Determine that the trade offs of operation system is correct, Determine tha...

Determine that the Trade offs of operations systems is correct You may wish to ponder this trade-offs for a moment and ask the question: is this correct? Consider an organisat

Explain what benefit would using the optimal order quantity, Garden Variety...

Garden Variety Flower Shop uses 760 clay pots a month. The pots are purchased at $2 each. Annual carrying costs per pot are estimated to be 30 percent of cost, and ordering costs a

Evaluate the servicescape dimensions, Question: (a) Services are usuall...

Question: (a) Services are usually produced and consumed simultaneously, and in many cases the customer has to enter the service facilities and be within the servicescape befo

Explain abc inventory classification system is true, 1. Which of the follow...

1. Which of the following statements about the ABC inventory classification system is TRUE? a. This approach is based on an insight established by Adam Smith in The Wealth of Na

Customisation - customers needs for a product, Customisation - Customers Ne...

Customisation - Customers Needs For a Product The ability of the operations system to tailor its outputs to meet special requirements of customers. Vision Express has taken a

Explain a popular concept in healthcare administration, A popular concept i...

A popular concept in healthcare administration these days is the service line. Let us put you in the CFO position for this question. For your own hospital, are you in favor of serv

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