Unformatted text preview: cost. (20%) b) With the EOQ obtained in part a), please calculate i) the annual total ordering/setup cost and ii) the annual total carrying/holding cost for this inventory system. (30%) c) Find the “lead time demand” distribution (i.e., its mean, standard deviation, and type of distribution). (20%) d) What is the reorder point to guarantee a stockout probability to be no more than 0.001 under this stochastic demand? (20%) e) What is the stockout probability if we set the reorder point at 60 boxes? (20%)...
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This note was uploaded on 09/21/2011 for the course OM 301 taught by Professor Naor during the Fall '09 term at George Mason.
- Fall '09