Supply chains using the order-up-to inventory model, Operation Management

Assignment Help:

Demand for Caruso's Frozen Pizza (CFP) is normally distributed. The demand for CFP averages 400 per day with a standard deviation of 200. Weekly demand (5 days) averages 2,000 units with a standard deviation of 555. A Cold can essentially order any quantity of CFP it wants each day. Any order for CFPs arrives 4 days after the order. Further, it costs ACold $0.01 per day to keep a CFP in inventory, while a back order is estimated to cost ACold $0.45.

A.    Suppose the base stock level 2,800 is chosen. What fraction of customer demands is met immediately from stock?

B.     Suppose the base stock level 2,800 is chosen. What is the average amount of inventory on order?

C.     Suppose the base stock level 2,800 is chosen. What is the annual holding cost? (Assume 260 days per year)

D.    What base stock level minimizes inventory while maintaining a 97 percent in-stock probability


Related Discussions:- Supply chains using the order-up-to inventory model

Sample mean chart - control charts for variables, Sample Mean Chart - Contr...

Sample Mean Chart - Control Charts for Variables This figure depicts a typical means chart, on which sample means would be progressively plotted, left to right. Two sets of c

Offer a description of the freedom of the world survey, Please provide a de...

Please provide a description of the Freedom of the World survey. What factors are taken into consideration in the survey when forming the rankings?

Explain what are the objectives of work-center scheduling, 1) What are the ...

1) What are the objectives of work-center scheduling? 2) Distinguish between a job shop, aGT cell and a flow shop?

Explain three major important roles of entrepreneurship, Describe three maj...

Describe three major important roles of entrepreneurship in the American economy.

Explain type of antennas issues signals with equal strength, Name the type ...

Name the type of antennas issues signals with equal strength and clarity in all directions? a. directional b. bi-directional c. tri-directional d. omni-directional

Employee empowerment, 6. What does employee empowerment mean in job design

6. What does employee empowerment mean in job design

Difference between, Give difference between assembler, compiler and interpr...

Give difference between assembler, compiler and interpreter

Explain in words your motivation to do a good job, Describe in words your m...

Describe in words your motivation to do a good job? Does your company recognize your value? Is your salary/wages indicative of your value?

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