OM_FINAL_L Problem 1: (50 points) A company uses an average of 2,000 tires each quarter. Preparing an order and receiving a shipment of tires involves a cost of S40 per order. Annual carrying costs are $100 per tire. Determine the economic order quantity What is the average number of tires on hand? c. How many orders per year will be there? Compute total cost of ordering and carrying tires Problem 2: (55 points) A fall fashion dress cost $70 and sells for $140. At the end of the fall season all unsold dresses are marked down and sold at $30. Demand of this fashion dress is normally distributed and given by N(600,50). What is the optimal stocking level? If company orders that quantity what would be the probability of stock out? (25 points) Find the stocking level for providing 90% service level. (15 points) If company buys 650 units, what service level will it achieve? What would be the probability of stock out? (15 points) Problem 3: (45 points) Mean arrival rate is 14customer per hour Mean service rate is 20 customer per hour Calculate the following queuing characteristics. Show your full calculation 1. Mean arrival rate 2. Mean inter arrival time 3. Mean service rate 4. Mean service time s. Utilization factor 6. Percent idle time 7. Mean waiting time in the queue Mean no. of customers in the queue 9. Mean waiting time in the system ri Problem 3: (45 points) Mean arrival rate is 14customer per hour Mean service rate is 20 customer per hour Calculate the following queuing characteristics. Show your full calculation. 1. Mean arrival rate 2. Mean inter arrival time 3. Mean service rate 4. Mean service time s. Utilization factor 6. Percent idle time 7. Mean waiting time in the queue 8. Mean no. of customers in the queue 9. Mean waiting time in the system 10. Mean no. of customers in the system 11. Probability of no customer in the system 12. Prob. of 2 customers in the system 13. Prob. of