Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

management at cafe Louis would like to develop an inventory ordering policy of a 90 percent probability of not stocking out. given the information below

management at cafe Louis would like to develop an inventory ordering policy of a 90 percent probability of not stocking out. given the information below , formulate an inventory management system. item cost = $10, ordering cost = $240 holding cost (%) = 33% of item cost, annual demand = 22,750, Average demand = 515 per week, Standard deviation of weekly demand = 20 per week, Lead time = 1 week, Service. probability = 90%. State the optimal order Quantity Q*. Determine the reorder point R when demand is constant, Determine the reorder point R when demand varies, determine the total inventory cost

Step by Step Solution

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

Step: 3

blur-text-image

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

Fundamentals Of Project Management

Authors: Dr. Obi Obata

1st Edition

9798849596822

More Books

Students also viewed these General Management questions

Question

Solve Problem for the indicated variable. C = 5/9 (F - 32); For F

Answered: 1 week ago

Question

Describe the factors influencing of performance appraisal.

Answered: 1 week ago

Question

What is quality of work life ?

Answered: 1 week ago