Answered step by step
Verified Expert Solution
Link Copied!
Question
1 Approved Answer

The multinational Zimple manufactures a range of electronic products, including the Zim - K , a popular state - of - the - art 4

 

The multinational Zimple manufactures a range of electronic products, including the Zim-K, a popular state-of-the-art 4K monitor.

Orders for the Zim-K come from online and big-box stores. The factory receives an average of 3 orders a day (Poisson distribution). Each order is routed to one of the factory's production lines. Whatever its size, an order takes an average of 5 days to complete (exponential distribution) on a production line. The factory has 5 permanently activated production lines, and up to 5 more can be activated (total of 10). However, each additional line costs $1,000 per day of operation.

To ensure that monitor components are state-of-the-art, inventory is kept to a minimum. Consequently, the number of orders in queue is limited to a maximum of 30. Each order over the 30th is sent to a subcontractor, at a unit cost of $5,000. In addition, customer contracts stipulate that each day that an order waits to be processed costs $2,500 in penalty charges.

 

Step by Step Solution

There are 3 Steps involved in it

Step: 1

To address this lets identify specific questions or issues based on the provided inf... 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

Project Management A Systems Approach to Planning Scheduling and Controlling

Authors: Harold Kerzner

10th Edition

978-047027870, 978-0-470-5038, 470278706, 978-0470278703

More Books

Students explore these related General Management questions