Question: please make Excell and show me the formula with it. Thx. 17. Gemtronics Corporation produces electrical components for appliance and automo- tive industries. Previous daily

please make Excell and show me the formula with

please make Excell and show me the formula with it. Thx.

17. Gemtronics Corporation produces electrical components for appliance and automo- tive industries. Previous daily demand for part XK202 has shown little seasonal varia- tion, but has been normally distributed with a mean of 600 per day and a standard de- viation of 100. The company works 250 days per year. A lead time of 10 days is required to schedule, wait for an available machine, and set up for a production run. The cost to initiate a production run is approximately $225, and the production rate for part XK202 is 3,000 per day. The holding cost for each unit of this product is $0.25 per year. a. Compute the optimal production quantity for this item. b. Compute a reorder level that will provide a 0.96 probability of meeting customer demand during the lead time

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related General Management Questions!