MGMT 36100: HW 0440 PointsDue: March 24, 2010Show your calculations. Submit one copy per group. Neatness is expected.Page numbers below refer to number at the end of Inventory Management and Scheduling chapter (print version).Page numbers for questions from the textbook may be different if you have an e-copy.Probability of stock out = 0.1 means 90% SL. Probability of stock out = 0.02 means 98% SL.Question 1 (9 points, 1+1+2, 1+2+2)Round up ROP / OUL values to the nearest integer.Part (i):Solve problem 20 page 252 exceptuse acceptable stock-out risk as 3% instead of 4%.Part (ii):Solve problem 26 page 253 exceptmake the following changes in part (c): “If a fixed order interval of eight weeksinstead of an ROP” and “it orders 40 boxeswhen the amount on hand is 12 boxes”.Question 2: (6 points)123456789108075951201457570907085Suppose the OUL= 510 and the review period OI= 2 days. Reviews will be carried out on Day 1, 3, 5, etc. The lead-time (LT) is 3 days. Inventory positionon day 1 is 500. An order of 200 is expected to arrive on day 2.
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