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Boat obtains airdopes from its contract manufacturer located in China to serve Indian market / The Indian marketlocatedKolkata. Daily demand at the Kolkata warehouse is
Boat obtains airdopes from its contract manufacturer located in China to serve Indian market The Indian marketlocatedKolkata. Daily demand at the Kolkata warehouse is normally distributed, with a served from a warehouse mean of and a standard deviation of Thewarehouse aims for a CSL of percent. The company is debating whether to use sea or air transportation from China, Sea transportation resultsin a lead time of days and costs Rs per airdopes. Air transportation results in a lead time of days and costs Rs per airdopes. Eachairdopes costs Rs and Boat uses a holding cost of percent. Given the minimum lot sizes, Boat would order airdopes once every in days if using sea transport and once in days if using air transport. To begin with, assume that Boat takes ownership of the inventory on delivery. Note FS
Boat obtains airdopes from its contract manufacturer located in China to serve Indian market The Indian marketlocatedKolkata. Daily demand at the Kolkata warehouse is normally distributed, with a
served from a warehouse
mean of and a standard deviation of Thewarehouse aims for a CSL of percent. The company is debating whether to use sea or air transportation from China, Sea transportation resultsin a lead time of days and costs Rs per airdopes. Air transportation results in a lead time of days and costs Rs per airdopes. Eachairdopes costs Rs and Boat uses a holding cost of percent. Given the minimum lot sizes, Boat would order airdopes once every in days if using sea transport and once in days if using air transport. To begin with, assume that Boat takes ownership of the inventory on
delivery. Note FS
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