Industrial Engineering

2.(a) (Base stock model question) Demand for an oven is 16 units per week and replenishment lead time is 1 week. Demand can be reasonably approximated by Poisson distribution. a) Compute the fill rates S(r) for r=21 and r=22 b) Calculate the backorder level for r=21 2.(b) (Base stock model question) One oven costs 6000TL and a yearly interest rate of 52% is used to charge inventory costs (one year is 52 weeks so what is the weekly interest rate if yearly is 52% ) Backorder cost is 100 TL per unit per week. a) Compute the optimal base stock level based on this information b) Compute the fill rate for this base stock level