Question: Continuing from example 4 , it was observed that the daily demand during lead - time varies in such a way that it follows Norman
Continuing from example it was observed that the daily demand during leadtime varies in such a way that it follows Norman distribution of mu and lambda The management wants to be at service level. The ordering cost, Co is $ order with perchase price of $ yard with storedays of leadtime. Recall Cc $ per year per yard with D yards per year. The facility operates daysyear Determine the optimal order size, safety stock quantity, reorder point, and total inventory cost.
Step by Step Solution
There are 3 Steps involved in it
1 Expert Approved Answer
Step: 1 Unlock
Question Has Been Solved by an Expert!
Get step-by-step solutions from verified subject matter experts
Step: 2 Unlock
Step: 3 Unlock
