Question: A particular product is purchased for $ 3 . 7 each. Cost of ordering is $ 1 5 5 per order. Holding cost is given
A particular product is purchased for $ each. Cost of ordering is $ per order. Holding cost is given as $ per unit per year. Monthly demand for the product follows a normal distribution with mean and standard deviation Order lead time is given as months. Assume that the cost of back ordering is given as $
a Determine the optimal values of order quantity and reorder point QR
b Determine the average annual total cost of holding, setup and stockout associated with this product.
c Suppose that stockout cost is replaced with a Type I service objective of Find optimal values of QR in this case.
d Suppose that stockout cost is replaced with a Type II service objective of Find optimal values of QR in this case.
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