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15.762, ESD.267J, 1.273J
Spring 2011
Problem Set – due
on Session 5
.
Please do this in groups, and submit one answer set per group.
You should use the
(approximate) models that were covered in class. For some questions you will need to
use material beyond what we did in class, such as models from your introductory
class.
Please do all of the problems.
Problems #1 and 6 removed due to copyright restrictions.
2. Consider an item whose inventory is controlled by a periodic review, basestock
policy. Suppose the review period is 1 week (7 days), the replenishment leadtime is
3 days, and the daily demand is normally distributed with mean 20 and standard
deviation 4.
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View Full Document a. What is the base stock B to assure that the coverage probability (Type I
service) is 0.98? What is the average inventory level? How many stockout
events might you expect per year? (Assume 50 weeks per year)
b. What is the base stock B to assure that the fill rate (Type II service) is 0.98?
What is the average inventory level? How many stockout events might you
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This note was uploaded on 12/06/2011 for the course ESD 15.763j taught by Professor Davidsimchilevi during the Spring '05 term at MIT.
 Spring '05
 DavidSimchiLevi

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