{[ promptMessage ]}

Bookmark it

{[ promptMessage ]}

311_session_16

311_session_16 - Demand N~(100,10^2 8 Commonality Same idea...

Info icon This preview shows pages 1–13. Sign up to view the full content.

View Full Document Right Arrow Icon
1 Risk Pooling, Commonality, Late Customization BUAD311 Hiroshi Ochiumi
Image of page 1

Info icon This preview has intentionally blurred sections. Sign up to view the full version.

View Full Document Right Arrow Icon
2 From Statistics Course = = = = = = n i i n i i n i i n i i n X Var X Var EX X E X X X X 1 1 1 1 3 2 1 ) ( t, independen are variables random the If ,..., , , variables random any For
Image of page 2
3 From Statistics Course Using the property, Mean=400 Variance=4*100=400 Standard deviation=2*10=20 standard deviation does not increase proportionally!!! : has then ) 10 , 100 ( are and , , , If 4 3 2 1 2 4 3 2 1 X X X X N iid X X X X + + +
Image of page 3

Info icon This preview has intentionally blurred sections. Sign up to view the full version.

View Full Document Right Arrow Icon
4 From Statistics Course Generally, in the case of normal distribution, : has ... then ) , ( are ..., , , , If 3 2 1 2 3 2 1 n n X X X X N iid X X X X + + + + σ μ σ μ = = n deviation standard n mean
Image of page 4
5 Risk Pooling We apply this to warehousing/inventory location problem. It can be applied to waiting line situations as well.
Image of page 5

Info icon This preview has intentionally blurred sections. Sign up to view the full version.

View Full Document Right Arrow Icon
6 Two Warehouses What is the optimal target inventory level at each WH? What is the total inventory? Demand N~(100,10^2) Warehouse A Demand N~(100,10^2) Warehouse B
Image of page 6
7 Central Warehouse What is the optimal target inventory level at CWH? Demand N~(100,10^2) Central Warehouse
Image of page 7

Info icon This preview has intentionally blurred sections. Sign up to view the full version.

View Full Document Right Arrow Icon
Image of page 8
Image of page 9

Info icon This preview has intentionally blurred sections. Sign up to view the full version.

View Full Document Right Arrow Icon
Image of page 10
Image of page 11

Info icon This preview has intentionally blurred sections. Sign up to view the full version.

View Full Document Right Arrow Icon
Image of page 12
Image of page 13
This is the end of the preview. Sign up to access the rest of the document.

Unformatted text preview: Demand N~(100,10^2) 8 Commonality Same idea applied to production setting. 9 Two different parts What is the optimal target inventory level for each part? What is the total inventory? Saab Demand N~(100,10^2) Floor pan for Saab 9000 Alfa Romeo Demand N~(100,10^2) Floor pan for Alfa Romeo 164 10 If the two models share the identical part, What is the optimal target inventory level? Impact on R&D costs One floor pan for two models Saab Demand N~(100,10^2) Alfa Romeo Demand N~(100,10^2) 11 Late Customization Again the same idea 12 Red and Blue T-shirts Fabric Dye in blue Cut Sew Blue N~(100,10 Dye in red Cut Sew Red N~(100,10^ 13 Benetton Red and Blue T-shirts In fashion/apparel industry forecasting is always an issue. Fabric Cut Sew Dye in red Red N~(100,10^2 Blue N~(100,10^ Dye in blue...
View Full Document

{[ snackBarMessage ]}

What students are saying

  • Left Quote Icon

    As a current student on this bumpy collegiate pathway, I stumbled upon Course Hero, where I can find study resources for nearly all my courses, get online help from tutors 24/7, and even share my old projects, papers, and lecture notes with other students.

    Student Picture

    Kiran Temple University Fox School of Business ‘17, Course Hero Intern

  • Left Quote Icon

    I cannot even describe how much Course Hero helped me this summer. It’s truly become something I can always rely on and help me. In the end, I was not only able to survive summer classes, but I was able to thrive thanks to Course Hero.

    Student Picture

    Dana University of Pennsylvania ‘17, Course Hero Intern

  • Left Quote Icon

    The ability to access any university’s resources through Course Hero proved invaluable in my case. I was behind on Tulane coursework and actually used UCLA’s materials to help me move forward and get everything together on time.

    Student Picture

    Jill Tulane University ‘16, Course Hero Intern