Question: that is the given. Refund if you're not capable to do it An electronics shop in Beirut is importing transistors from China. The lead time

that is the given. Refund if you're not capable to do it
An electronics shop in Beirut is importing transistors from China. The lead time to receive shipments is 2 months. The cost of a transistor is $2/unit. The annual holding cost is 12% of the inventory's worth. A fixed cost of $100 has to be made for every order. a) If the demand for that transistor is estimated to be 600 units/year and the shop owner wants to order 600 items/order. What is the corresponding inventory policy? Find the corresponding monthly cost including the variable ordering cost. b) The owner found that modeling the demand as deterministic does not capture the variability of the demand and he wants to model the demand during 2 months to be uniform between 50 and 150 units. If the ordering quantity is 600 units/order like in part a), for a 95% service level and a positive safety stock find the corresponding inventory policy and its cost
Step by Step Solution
There are 3 Steps involved in it
1 Expert Approved Answer
Step: 1 Unlock
Question Has Been Solved by an Expert!
Get step-by-step solutions from verified subject matter experts
Step: 2 Unlock
Step: 3 Unlock
