Question: problem 30 parts a and b are over problem 29. i need help with problem 30 please Five Inventory Control Subject to Uncertain Demand 30.

problem 30 parts a and b are over problem 29. i
problem 30 parts a and b are over problem 29. i
problem 30 parts a and b are over problem 29. i need help with problem 30 please
Five Inventory Control Subject to Uncertain Demand 30. Consider the problem of satisfying the demand for number 2 pencils faced by the cam- pus store mentioned in Problem 29. a. Re-solve the problem, substituting a Type 1 service level criterion of 95 percent for the stock-out cost. b. Re-solve the problem, substituting a Type 2 service level criterion of 95 percent for the stock-out cost. Assume that is given by the EOQ. 29. Annual demand for number 2 pencils at the campus store is normally distributed with mean 1,000 and standard deviation 250. The store purchases the pencils for 6 cents each and sells them for 20 cents each. There is a two-month lead time from the initiation to the receipt of an order. The store accountant estimates that the cost in employee time for performing the necessary paperwork to initiate and receive an order is $20, and recommends a 22 percent annual inter- est rate for determining holding cost. The cost of a stock-out is the cost of lost profit plus an additional 20 cents per pencil, which represents the cost of loss of goodwill. a. Find the optimal value of the reorder point R assuming that the lot size used is the EOQ. b. Find the simultaneous optimal values of Q and R. c. Compare the average annual holding, setup, and stock-out costs of the policies determined in parts (a) and (b). d. What is the safety stock for this item at the optimal solution

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