Individual Assignment 4

# Individual Assignment 4 - σ=√2*4= 5.6568 z=1.65...

This preview shows pages 1–2. Sign up to view the full content.

Tim O’Brien MGT 302 Individual Assignment #4 4/21/11 Problem 3: a) D=4*12 months= 48 units per year S= \$15 per order C=\$25 per unit I=30% per year Q=√(2SD/iC) Q=√(2*15*48/.3*25) Q=13.86 Q=14 units per order b) Order frequency= D/Q =48/14 Order frequency=3.43 orders per year c) Ordering cost=S*(D/Q) 15*3.43 Annual Ordering Cost=\$51.45 Holding cost=i*C*(Q/2) (.30)(25)(14/2) Annual Holding Cost=\$52.50 Problem 7: a) z=1.65 for 95% service level m=450 units σ=250 units R=m+(z*σ)=450+(1.65*250) R=863 units (Reorder point) Problem 10: a) Q=14 units per order R=m+z*σ m=48/6=8

This preview has intentionally blurred sections. Sign up to view the full version.

View Full Document
This is the end of the preview. Sign up to access the rest of the document.

Unformatted text preview: σ=√2*4= 5.6568 z=1.65 R=8+(1.65*5.6568) R=17.33=18 units b) P=√(2*S/iCD) P=√(2*15/(.30)(25)(48) P=.2887 years P=3.5 months T=m’+z*σ’ m’= (48/(12/5.5))=22.02 z=1.65 σ=√(2+3.5)*4=9.38 T=22.02+1.65*9.38 T=38 units c) The pros of using the P system are schedule replenishment and less record keeping. The cons of using the P system are that the P system requires a larger safety stock. This is more expensive. The Q system is a better inventory system for keeping track of more expensive items....
View Full Document

## This note was uploaded on 01/31/2012 for the course MGT 302 taught by Professor Baker during the Spring '09 term at Miami University.

### Page1 / 2

Individual Assignment 4 - σ=√2*4= 5.6568 z=1.65...

This preview shows document pages 1 - 2. Sign up to view the full document.

View Full Document
Ask a homework question - tutors are online