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MGMT 36100: HW 04 40 Points
Due: March 22, 2011
Write proper dimensions.
Do not write only answers, show calculations
.
Probability of stock out = 0.1 means 90% SL. Probability of stock out = 0.02 means 98% SL.
Question 1 (9 points, 1+1+2, 1+2+2)
Round up ROP / OUL values to the nearest integer.
Part (A):
Solve problem 20 page 254.
Part (B):
Solve problem 26 page 255.
Question 2: (6 points)
1
2
3
4
5
6
7
8
9
10
70
100
95
120
145
75
70
90
70
85
Suppose the
OUL
= 500 and the review period
OI
= 2 days. Reviews will be carried out on
Day 1, 3, 5, etc
. The
leadtime (
LT
) is 3 days. Inventory level on day 1 is 180. An order of 300 is expected to arrive on day 2.
Withdrawals during next 10 days are shown in the table.
Complete all calculations in a tabular form (
Make a
table with heading shown below
) and verify the formula below for X = 3 and Y= 7:
Closing IP (day Y) = Opening IP (day X) + Orders from X to Y – Withdrawals from X to Y.
Day
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 Spring '10
 panwalker

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