Answered step by step
Verified Expert Solution
Link Copied!
Question
1 Approved Answer

An office supply store keeps a small inventory of printer cartridges. The ink in them can dry out , so they have an expiration date

An office supply store keeps a small inventory of printer cartridges. The ink in them can dry out , so they have an expiration date ,which in turn means that store manager does not want to keep too many on hand. On other hand, the manager does not want to be out of stock when a customer wants to buy Cartridges. Assume customer demand occurs one at a time (that is customer never want to buy more than one at a time)according to Poisson process with mean rate of two per week. Assume that the store manager can order replacement stock one carton at a time, where a carton contains six cartridge. . After placing an order for replacement the store has to wait for a period of time(order processing plus delivery)this is negatively distributed with mean of one week. Such an order will be placed by manager as soon as stock falls to one cartridge. 

a) Set up an ergodic markov process model to track level of inventory . The states correspond to no of cartridges in stock .Each customer demand decreases the stock unit by 1 .And replacement will increase it by 6. 

b)what is the probability that customer waiting one these cartridges finds the store out of stock

Step by Step Solution

3.56 Rating (149 Votes )

There are 3 Steps involved in it

Step: 1

blur-text-image
Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Operations Management Creating Value Along the Supply Chain

Authors: Roberta S. Russell, Bernard W. Taylor

7th Edition

9781118139523, 0470525908, 1118139526, 978-0470525906

More Books

Students explore these related Mathematics questions