Annual demand for a particular halogen bulb is 4500 at a business that operates 300 days per
Question:
Annual demand for a particular halogen bulb is 4500 at a business that operates 300 days per year. The cost per order $220 and the holding cost per unit per year is $4.1. The stockout cost is $30/unit. The lead time is 20 days, and demand during lead time follows the empirical distribution given in the following table.
| Number of Units | Probability |
|---|---|
| 165 | 0.1 |
| 210 | 0.2 |
| 255 | 0.1 |
| 300 | 0.2 |
| 345 | 0.1 |
| 390 | 0.2 |
| 435 | 0.1 |
What is the average demand during lead time? Report as a whole number.
What is the average stockout per inventory cycle with a safety stock of 90? Round, if necessary, to two decimal digits.
What is the stockout cost associated with a safety stock of 90 per inventory cycle? Round to a whole number.
What is the number of inventory cycles, i.e. number of orders, in a year? Round to a whole number.
What is the annual stockout cost associated with a safety stock of 90 ? Round to a whole number.
Expert Answer:
1 The average demand during lead time is 285 units This is calculated by summing the demand for each ... View the full answer
