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42. 43. Suppose in a 25-factorial experiment with factors A, B, C, D and E, a replicate is divided into four blocks of size

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42. 43. Suppose in a 25-factorial experiment with factors A, B, C, D and E, a replicate is divided into four blocks of size eight each. How many effects will be confounded? Is it possible to confound the effects AB, BC and ABC? Justify your answer. The daily demand for a commodity is approximately 100 units. Every time an order is placed, a fixed cost of Rs.10,000/- is incurred. The daily holding cost per unit inventory is Rs.2/-. If the lead time is 15 days, determine the economic lot size and the reorder point. Further suppose that the demand is actually an approximation of a probabilistic distribution in which the daily demand is normal with mean u = 100 and s.d. 10. How would you determine the size of the buffer stock such that the probability of running out of stock during lead time is at most 0.01?

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