assignment-5 solutions

assignment-5 solutions - 2 Cu = \$125 Co = \$250...

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2 Cu = \$125 C o = \$250 , NORMSINV(.333)=-0.43164 Should purchase 25 + (-.43164)(15) = 18.5254. Super Discount should overbook 19 passengers on the flight. 3 = 22.36 22 4 Service level P = .95, D = 5000, = 5000/365, T = 14 days, L = 10 days, = 5 per day, and I =150. = 24.495 From Standard normal distribution, z = 1.64 = 218.94 219 6 a. = 1975.23 1975 From Standard normal distribution, z = 1.64 = 515(1) + (1.64)25 = 556 b. Holding cost = = \$3,258.75 Ordering cost = = \$3,259.49 c. Holding cost = = \$3,300.00 Ordering cost = = \$3,218.75 Total annual cost with discount is \$6,518.75 – 50(25750/2000) = \$5,875.00, without discount it is \$6,518.24. Therefore, the savings would be \$643.24 for the year. 24 = 31.62 32 refrigerators 10 refrigerators From Standard normal distribution, z = 1.88 = (500/365)(7) + (1.88)10 = 9.59 + 18.8 = 28.39 28 refrigerators Order 32 refrigerators when the on-hand inventory level reaches 28 refrigerators.

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31 Quantity range Cost (C) EOQ Feasible Less than 2500 pounds
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assignment-5 solutions - 2 Cu = \$125 Co = \$250...

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