Question: Case 1. (Show all your works, including all computational procedures and details) Our paint store (OPS) sells 5 different paints to consumers: Red, Yellow, Green,

Case 1. (Show all your works, including all

Case 1. (Show all your works, including all computational procedures and details) Our paint store (OPS) sells 5 different paints to consumers: Red, Yellow, Green, Brown, and Blue. Demand of each color paint is normally distributed with monthly mean (gallons) and standard deviation summarized in Table 1. Annual holding cost rate is 25%. Each order incurs an ordering setup (fix) cost of $1,000, and lead time is 2 months. Our paint store (OPS) wants the probability of stocking out (1-SL) to be no more than 5% (use z=1.65). 4 Table 1: Demand (Gallon/Month) Color Rede Yellow Greene Brown Blue Mean Demande 20- 402 322 442 50 Standard Deviation of Demand | 102 202 154 254 302 (a) Assume that each color paint's inventory is managed independently (each color paint determines its order quantity and safety stock individually). Cost per gallon of paint is $20 regardless of color. (a.1) Let a j=Red, Yellow, Green, Brown, Blue denote economic order quantity (EOQof the color paint j. For example, Red =EOQ of color paint Red. Also let Q* =QRS + QYellow + Qom - Green + Blue be the total EOQ of 5 color paints. Compute EOQ for each color. Red =?, Yalov = ?, Brom=?, Gen?, Q3h = ?.- What should be the total EOQ for 5 colors combined? Q* =

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