Question: Given the following information : 1 . The demand during the lead time follows a normal distribution N ( 2 5 2 , 1 0
Given the following information : The demand during the lead time follows a normal distribution N The probability of exceeding units is about percent The holding cost per unit per year is $ The average annual demand is units The EOQ is approximately parts The annual inventory cost at the EOQ is approximately $ The order frequency at theEOQ is approximately times per year The unit ratio is approximately
Please find the following:
Using your anwer to number what is the cost coefficient ratio of ordering yQ units instead of Q units?
a b c d
Using your answer to the questions what is the perunit cost of a surplus, C
a $ b $ c $ d $
Using the average unit cost c and revenue r along with your answer to the above question, what is the optimal service level, SL
a b c d
Considering the above question, what is the safety stock required per order at the optimal service level?
a parts b parts c parts d parts
Suppose we relaxed the service level requirement to only What is the safety stock required per order at this service level?
a parts b parts c parts d parts
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
