A materials manager for Missoula Manufacturing has provided the following data for one of their widely...
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A materials manager for Missoula Manufacturing has provided the following data for one of their widely used components: Q* = 50 D = 500|| rv = $10 A = $25 Lead time demand for the component is normal with a mean of 25 and a variance of 25. What is the expected quantity of backordered items per year if the manager uses an optimal (s, Q) policy?: a. The desired service level (the probability of no stockout during the lead time) is 90%. b. The desired service level is 95%. A materials manager for Missoula Manufacturing has provided the following data for one of their widely used components: Q* = 50 D = 500|| rv = $10 A = $25 Lead time demand for the component is normal with a mean of 25 and a variance of 25. What is the expected quantity of backordered items per year if the manager uses an optimal (s, Q) policy?: a. The desired service level (the probability of no stockout during the lead time) is 90%. b. The desired service level is 95%.
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Answer rating: 100% (QA)
To calculate the expected quantity of backordered items per year using an optimal s Q policy we need to use the reorder point formula and consider the ... View the full answer
Related Book For
Management Accounting
ISBN: 9780730369387
4th Edition
Authors: Leslie G. Eldenburg, Albie Brooks, Judy Oliver, Gillian Vesty, Rodney Dormer, Vijaya Murthy, Nick Pawsey
Posted Date:
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