Question: Return to the automobile manufacturing plant from Problem 3 . 5 . Suppose nowthat the rate at which the plant uses powerlock mechanisms is stochastic
Return to the automobile manufacturing plant
from Problem Suppose nowthat the rate at which the plant uses powerlock
mechanisms
is stochastic and normally distributed, with a mean of per day per hour and a standard
deviation of per day. Replenishment orders for powerlock
mechanisms incur a lead
time of days. If the plant runs out of power locks, it must expedite them from the supplier
at a cost of $ each. Using the EIL approximation for r;Q policies in Section
find approximate values for r and Q Also report the expected total cost per week, using
equation
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