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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
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 thisStep by Step Solution
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