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For this module, you will complete the following problems from the textbook: Inventory Control Models, pages 231-233, Problems 31 and 37 using Excel QM. (31)
For this module, you will complete the following problems from the textbook: \"Inventory Control Models,\" pages 231-233, Problems 31 and 37 using Excel QM. (31) Omar Harris receives 5,000 tripods annually from Top-Grade Suppliers to meet the annual demand. Omar runs a large photographic outlet, and the tripods are used primarily with 35 mm cameras. The ordering cost is $15 per order, and the carrying cost is $0.50 per unit per year. Weekly demand is 100 tripods. (a) What is the optimal order quantity? (b) Top-Grade is offering a new shipping option. When an order is placed, Top-Grade will ship onethird of the order every week for three weeks instead of shipping the entire order at one time. What is the order quantity if Omar chooses this option? To simplify your calculations, assume that the average inventory is equal to one-half of the maximum inventory level for Top Grade's new option. (c) Suppose Top-Grade Suppliers offer to ship one-fifth of the order every week for five weeks. What is the order quantity under this option? Make the same assumption as in part (b). (d) Calculate the total cost for each option. What do you recommend? (37) Based on available information, lead time demand for CD-ROM drives averages 250 units (normally distributed), with a standard deviation of 25 drives. Management wants a 98% service level. How many drives should be carried as a safety stock
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