Question: 5 . 3 ( ( r;Q ) for Automobile Components ) Return to the automobile manufacturing plant from Problem 3 . 5 . Suppose nowthat
r;Q for Automobile Components Return to the automobile manufacturing plant
from Problem Suppose nowthat the rate at which the plant uses powerlock
mechanisms
is stochastic and normally distributed, with a mean of per day per hour and a standard
deviation of per day. Replenishment orders for powerlock
mechanisms incur a lead
time of days. If the plant runs out of power locks, it must expedite them from the supplier
at a cost of $ each. Find r and Q using each of the methods below. Also report the
expected total cost per week, using equation
a The EIL approximation.
b The EOQB approximation.
c The EOQSS approximation.
d The lossfunction
approximation.
e Algorithm for exact optimal values of r and Q
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