problem set C

# problem set C - Problem Set 3 Michael Schoenfeld Problem 1...

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Problem Set 3 Michael Schoenfeld Problem 1 Steel bars per year 7200 Price per ton 720 Order cost 300 holding cost (yearly) 15% a.) SQRT((2*7200*300)/(0.15*720)) 200 tons each order Q/D 0.0277778 10.14 days inbetween orders total cost total cost - material cost total annual cost (7200/200)*300+100*(.15*720)+7200*720 5205600 21600 Total ordering and holding cost 21600 b.) 25*12=days per year 300 4 days advance 24 tons per day 96 reorder when you have 96 tons left c.) 300 tons 23400 so 23400-21600 1800

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Problem 2 Unit Cost 2500 Delivery time 1 month or 30 days Monthly Demand 2000 units/month 66.6667 units/day Std Dev 230 units Inv Holding cost 100 per unit per month a.) 95% translates to z=1.645 saftey stock =z*sigma*sqrt(RP+L) RP=1 L=1 535.07 b.) Annual holding cost of saftey stock 535.07*100*12moths/year 642084 c.) 2000*(1+1) 4000 d.) Z at 98 is 2.054 668.10 saftey stock at 98% difference is 133.04
Problem 3 Product Product Number Monthly Demand (tons) Unit Cost Dollar Volume Category Junior Beams
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problem set C - Problem Set 3 Michael Schoenfeld Problem 1...

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