Question: 4) S uppose that lead-time demand is normally distributed with a mean of 100 units and a standard…

02 May Question: 4) S uppose that lead-time demand is normally distributed with a mean of 100 units and a standard…

Posted at 09:02h in 2Past Paper by Exams

4) S uppose that lead-time demand is normally distributed with a mean of 100 units and a standard deviation of 20 units, If the firm wants to maintain 92% service Jevel, what should the reorder point be? 2-1.88 Pop-137.6units 5) We use 1,500 per year of a certain subassembly that has an annual holding cost of $45 placed costs us $150. We operate 300 days per year and have found that an order must be placed with our supplier 6 working days before we can expect to receive that order. For this subassembly, find (a) the economic order quantity (b) the annual holding cost (c) the annual ordering cost (d) the reorder point The estimated and the 6) The Handy Manufacturing Company manufactures small air conditioner compressors demand for the year is 12,000 units. The setup cost for the production process is $200 per run, carrying cost is $ been 10.00 per unit per year. The daily production rate is 100 units per day, and demand has 50 units per day. Determine the number of units to produce in each batch. (The problem assumes 240 operating days.)

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