Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

please show in excel formulas and answers. Thank you for the help Consider a product with the following lead time demand Lead time is two

image text in transcribed

please show in excel formulas and answers. Thank you for the help

Consider a product with the following lead time demand Lead time is two week. Given the following data CP=$200,CH=$5 per unit per year, and assuming 52 weeks per year, find the optimal order quantity and reorder point if a. Management will tolerate at most 85% chance of stocking out in a cycle. b. Management wants 98 out of a 100 on average to find the product in stock. 2. A firm sells a product with an annual demand of A=10,000. The holding cost is $3 per unit per year, the ordering cost is $100 per order, and the shortage cost is $40 per unit. Demand exhibits some variability and management has estimated that lead-time demand follows a normal distribution with a mean of =300 and variance 2=2500. a. If management sets Q=700 and R=350, find the probability of stocking out in a cycle. b. If management sets Q=700 and R=350, find the percentage of consumers who find the product in stock when they want to buy it.. c. If management sets Q=700 and R=350, find the annual holding, ordering, and shortage cost. d. What recommendations with regard to Q and R would you make for this problem? Consider a product with the following lead time demand Lead time is two week. Given the following data CP=$200,CH=$5 per unit per year, and assuming 52 weeks per year, find the optimal order quantity and reorder point if a. Management will tolerate at most 85% chance of stocking out in a cycle. b. Management wants 98 out of a 100 on average to find the product in stock. 2. A firm sells a product with an annual demand of A=10,000. The holding cost is $3 per unit per year, the ordering cost is $100 per order, and the shortage cost is $40 per unit. Demand exhibits some variability and management has estimated that lead-time demand follows a normal distribution with a mean of =300 and variance 2=2500. a. If management sets Q=700 and R=350, find the probability of stocking out in a cycle. b. If management sets Q=700 and R=350, find the percentage of consumers who find the product in stock when they want to buy it.. c. If management sets Q=700 and R=350, find the annual holding, ordering, and shortage cost. d. What recommendations with regard to Q and R would you make for this

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_2

Step: 3

blur-text-image_3

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

Yes You Can Get A Financial Life

Authors: Ben Stein, Phil Demuth

1st Edition

1401911250, 978-1401911256

More Books

Students also viewed these Accounting questions

Question

What do psychologists mean when they say the brain is plastic?

Answered: 1 week ago

Question

1 5 x ^ 3 + 8 x - 1 2 / 3 x ^ 2 + 6 x + 1

Answered: 1 week ago

Question

13. You always should try to make a good first impression.

Answered: 1 week ago