QM670InventoryHomework

QM670InventoryHomework - QM 670 Inventory Homework Do...

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QM 670 Inventory Homework Do problems 2, 4, 7, 8, and 11 on pp. 227-229. 1. Beaver & Thorne Inc. produces expensive decorative jewelry for prestigious upscale Manhattan department stores. Due to current capacity constraints, they produce an equal quantity each period. For production, they must order glue from either Bagcio- Glue (BG) for $50/container or from Istanbuluo-Glue (IG) for $48. It costs $100 to place an order with BG and $150 with IG. The cost of holding inventory is $.10/dollar per year. If B&T need 100,000 glue containers/year, which supplier should they choose? 2. House of Hillal is a prestigious upscale Manhattan department store (and yes, they do buy occasionally from B&T). They must decide the optimal number of Lady Blumberg scarves to stock. Each scarf costs $100.00 and sells for $200.00. The cost to place an order is $50.00, and it takes a week for the scarves to arrive. During the lead-time period, demand is normally distributed with a mean and standard deviation of 10 and 2 scarves, respectively. The cost of holding a scarf in inventory is
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QM670InventoryHomework - QM 670 Inventory Homework Do...

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