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AWalmartsupplier'sdemandforecastingteamestimatesthatthedemandforjeansisonaverage 600pairspermonthwithastandarddeviationof255pairs.Theyassumethatthedemandis distributednormallyandthatjeansformasingledemandSKUforWalmart.Walmartdemandsa 99%servicelevel(i.e.,z=2.33).Basedonhistoricaldata,thesupplierestimatesthattheaverage leadtimeis2weeks.Thereisafixedcostofproductionof$145irrespectiveoftheordersize.Each pairhasavariablecostof$5andmonthlycostofcapitalata1.5%rateandhandlingcosts amountingto$1perpairpermonth.Assume4weekspermonth
AWalmartsupplier'sdemandforecastingteamestimatesthatthedemandforjeansisonaverage 600pairspermonthwithastandarddeviationof255pairs.Theyassumethatthedemandis distributednormallyandthatjeansformasingledemandSKUforWalmart.Walmartdemandsa 99%servicelevel(i.e.,z=2.33).Basedonhistoricaldata,thesupplierestimatesthattheaverage leadtimeis2weeks.Thereisafixedcostofproductionof$145irrespectiveoftheordersize.Each pairhasavariablecostof$5andmonthlycostofcapitalata1.5%rateandhandlingcosts amountingto$1perpairpermonth.Assume4weekspermonth
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Computer Organization
Authors: V Carl Hamacher, Carl Hamacher, Zvonko G Vranesic, Safwat G Zaky
5th Edition
