A product has a normally distributed demand of 240 units per month, a monthly holding cost of
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A product has a normally distributed demand of 240 units per month, a monthly holding cost of $0.25 per unit and a penalty per unit short of $5. Currently we are ordering this product through an (R,S) policy, R of 2 months and average order quantities of Q = 480. The product has a lead time of 0.5 months, and a standard deviation in its demand of 70 units per month. How many replenishment cycles are there in a year?
Related Book For
Service Management Operations Strategy Information Technology
ISBN: 978-0077841201
8th edition
Authors: James Fitzsimmons, Mona Fitzsimmons, Sanjeev Bordoloi
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