Question: A computer store sells laptops, among many other items, and the store manager purchases them from an international vendor. The unit purchasing cost is 1,000

A computer store sells laptops, among many other

A computer store sells laptops, among many other items, and the store manager purchases them from an international vendor. The unit purchasing cost is 1,000 TL and it costs 12.5 TL to hold each laptop in the store per week. Moreover, there is a fixed cost of 5,000 TL for placing an order since it involves importing of the laptops from overseas. The manager wants to determine when and how much to order using an (R, Q) policy in order to satisfy the demand. No shortages are allowed in parts a) and b). a) (5 points) What is the order quantity and the reorder level if the lead time in deliveries is 1 week and the demand is deterministic with rate 200 laptops per week? b) (15 points) What are the optimal values of Q and R if the vendor offers a discount of %5 in the purchase price when the order quantity is at least 2,000 laptops? You can assume that the holding cost remains the same. c) (10 points) Suppose now that the demand per week is random and it has the normal disribution with mean 200 and variance 400. The manager want to order such that the demand is satisfied 90% of the time. What is the reorder level and what is the safety stock

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related General Management Questions!