HW6,7 - RedClay of a bag of fertilizer is $4.00. The store...

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HW 6 HW 6 is due March 16, 2:00 pm. 1. Scenario: MassPC Inc. produces a 4-week supply of its PCPal model when stock on hand drops to 500 units. (It takes 1 week to produce a batch.) Factory orders average 400 units per week, and standard deviation of forecast errors is estimated at 125 units per week. (see Exercise 7.1, p. 195) a) What level of customer service is MassPC providing in terms of stock availability? b) MassPC wants to improve customer service to 80%, how will this improvement affect the company's reorder policy and its annual cost? c) MassPC wants to improve customer service to 90%, how will this improvement affect the company's reorder policy and its annual cost? 2. Scenario: The RedClay Garden Store stocks a profitable line of fertilizers that sell for $9.50 a 50 pound bag. The lead time to order the fertilizer is 2 weeks. The weekly sales are 1,200 bags and the standard deviation of sales if 200 per week. The holding cost for the fertilizer is 30% a year. The fixed cost to order the fertilizer is $10. The cost to
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Unformatted text preview: RedClay of a bag of fertilizer is $4.00. The store is open 52 weeks a year. RedClay wants an 85% service level. a) What is the economic order quantity for RedClay's order of fertilizer? b) What is the safety inventory required for RedClay to have an 85% service level? c) What is the reorder point for RedClay for the fertilizer? HW 7 is due March 16, 2:00 pm. 1. In a process there are two servers, who are utilized 80% of the time. It takes two minutes to process each customer. The arrival rate of customers and processing times of customers each have a coefficient of variation = 1.0. On average, how many customers are standing in line? 2. Read Exercise 8.3 on p. 235 a) DRAW the process flow. Remember that the Pizza Preparation can be done on one pizza while another pizza is in the oven. b) What is the bottleneck? c) What is the theoretical flow time of a pizza? d) What would you recommend and why?...
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