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

What is the objective under jit and time-based competition, _____ is the ob...

_____ is the objective under JIT and time-based competition. WIP reduction Material velocity Lead-time reduction Decreasing material wait time

Assignable causes - causes of variability, Assignable Causes - Causes of Va...

Assignable Causes - Causes of Variability Variability in process output may also be the result of external causes which are separately identifiable, and which are not inherent

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

Explain about the term flexible firm, Explain about the term flexible firm....

Explain about the term flexible firm. Flexible firm: By John Atkinson the conception of the “flexible firm” was proposed, he recognised about organisations will need grea

External factors - factor affecting productivity improvement, External Fact...

External Factors - Factors Affecting Productivity Improvement As was previously stated, the organisation has no direct control over external factors, be they government policy

Explain how technology has created a more efficient process, Type your ques...

Type your question hereHRIS systems have allowed HR to automate a variety of functions, including performance management, training, employee development, staffing, compensation, an

Explain what key mistake is christine moreno making, Case Study 5-2: The In...

Case Study 5-2: The Interfering Administrative Assistant Decision-Making Scenario 1. Relying on the concepts presented in chapters 10 and 11, identify the theories and concepts of

Explain the interest is compounded quarterly, Your company invests $50,000 ...

Your company invests $50,000 today at an annual interest rate of 4.00%. The interest is compounded quarterly. Calculate the first quarter interest, the total annual interest and th

Kanban cards needed, A bottling plant fills 2,400 bottles every two hours. ...

A bottling plant fills 2,400 bottles every two hours. The lead time is 40 minutes and a container accommodates 120 bottles. The safety stock is 10 percent of expected demand. How 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?

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