# hw4 - c u = 1.65 - 1.19 = 0.46 0.46 ( *) 0.7077 0.46 0.19 u...

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9. a. * 2 2(5000)(80) 400 (0.25)(20) o h DC Q C = = = b. 5000 (12) 240 250 r dm = = = c. 5000 (35) 700 250 r dm = = = d. Since r = 700 and Q * = 400, one order will be outstanding when the reorder point is reached. Thus the inventory on hand at the time of reorder will be 700 - 400 = 300. 11. 2 2(6400)(100) * 6400 (1 / ) 1 2 o h DC Q D P C P = = - - P = 8,000 Q * = 1789 P = 10,000 Q * = 1333 P = 32,000 Q * = 894 P = 100,000 Q * = 827 EOQ Model: 2 2(6400)(100) * 800 2 o h DC Q C = = = Production Lot Size Q * is always greater than the EOQ Q * with the same D , C 0 , and C h values. As the production rate P increases, the recommended Q * decreases, but always remains greater than the EOQ Q * . 27. a. c o = 1.19 - 1.00 = 0.19

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Unformatted text preview: c u = 1.65 - 1.19 = 0.46 0.46 ( *) 0.7077 0.46 0.19 u u o c P D Q c c = = = + + 1 150 = 30 P(D Q*) = 0.7077 Q* For a 0.7077 area below Q * , z = 0.55 Q * = 150 + 0.55(30) = 166.5 b. P (Stockout) = P ( D Q * ) = 1 - 0.7077 = 0.2923 c. c o = 1.19 - 0.25 = 0.94 0.46 ( *) 0.3286 0.46 0.94 u u o c P D Q c c = = = + + For a 0.3286 area in the left tail, z = -0.45 Q * = 150 - 0.45(30) = 136.50 The higher rebate increases the quantity that the supermarket should order. 2...
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## hw4 - c u = 1.65 - 1.19 = 0.46 0.46 ( *) 0.7077 0.46 0.19 u...

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