Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Read above informations carefully. Consider an inventory control system where holding cost is $1 per part per day, order cost is $1 per order

 

Read above informations carefully. Consider an inventory control system where holding cost is $1 per part per day, order cost is $1 per order per part and shortage cost is $10 per part. Beginning inventory is 100 parts. Holding cost is calculated with respect to ending inventory. And short amount will not be met later. D It is assumed that demand (i:i=1,2,...n) has a complicated probability distribution including 2 high demand days and low demand days. High demand case follow an exponential distribution and low demand follow an exponential () distribution where you can find all expressions below. High Demand ~ Exponential ( ) 42-X,if 0x2 A40+X,if 3x9 1 - D= Low Demand ~ Exponential ( 2 ) 12-X, if 0x2 10+X,if 3x9 The demand will be determined with respect to previous days demand by assuming D=0. Expo , if D-15 Expo 2,if D-17 2 1 A X Last number of your student ID Hint: A is rate, not mean value. D (lli:i=1,2,...7) Order amount is 50 parts and re-order point is 20 parts. Order is made in the evening and it arrives in the morning. Lateness doesn't have randomness, it is fixed to 1 day. Using the random numbers given in Table 1 calculate total cost for 7 days? Use random numbers given at Table 1 in 4 digits and construct your table with integer values. Table 1- Random Numbers 0,8166 0.8166 0,8428 0.8428 0,4992 0.4992 0,1853 0.1853 0,0276 0.0276 0,3671 0.3671 0,7255 0.7255

Step by Step Solution

3.34 Rating (157 Votes )

There are 3 Steps involved in it

Step: 1

To calculate the total cost for 7 days using the given random numbers we need to ... 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

Income Tax Fundamentals 2013

Authors: Gerald E. Whittenburg, Martha Altus Buller, Steven L Gill

31st Edition

1111972516, 978-1285586618, 1285586611, 978-1285613109, 978-1111972516

More Books

Students also viewed these General Management questions