Op Man HW 6 Chapters 20 &amp; 23

# To illus trate y our rec ommended proc edure us e as

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Unformatted text preview: 5. Assignme nt Pr int Vie w awar d: 0.50 out of 0.50 points Problem 20-13 Duns treet's Department Store would lik e to dev elop an inv entory ordering polic y of a 90 perc ent probability of not s toc k ing out. To illus trate y our rec ommended proc edure, us e as an ex ample the ordering polic y for white perc ale s heets . Demand for white perc ale s heets is 3,000 per y ear. The s tore is open 365 day s per y ear. Ev ery four week s (28 day s ) inv entory is c ounted and a new order is plac ed. It tak es 11 day s for the s heets to be deliv ered. Standard dev iation of demand for the s heets is four per day . There are c urrently 180 s heets on hand. How many s heets s hould y ou order? (Use Excel's NORMSINV() function to find the correct critical value for the given α­level. Do not round interm ediate calculations. Round "z " value to 2 decim al places and final answer to the nearest whole num ber.) Number of s heets 173 Worksheet Problem 20­13 Learning Objective: 20­02 Analyze how different inventory control systems work. Problem 20-13 Duns treet's Department Store would lik e to dev elop an inv entory ordering polic y of a 90 perc ent probability of not s toc k ing out. To illus trate y our rec ommended proc edure, us e as an ex ample the ordering polic y for white perc ale s heets . Demand for white perc ale s heets is 3,000 per y ear. The s tore is open 365 day s per y ear. Ev ery four week s (28 day s ) inv entory is c ounted and a new order is plac ed. It tak es 11 day s for the s heets to be deliv ered. Standard dev iation of demand for the s heets is four per day . There are c urrently 180 s heets on hand. How many s heets s hould y ou order? (Use Excel's NORMSINV() function to find the correct critical value for the given α­level. Do not round interm ediate calculations. Round "z " value to 2 decim al places and final answer to the nearest whole num ber.) Number of s heets 173 ± 1% Explanation: Serv ic e lev el P = 0.90, D = 3,000, = 3,000/365, T = 28 day s , L = 11 day s , σ = 4 per day , and I = 180. From Standard normal dis tribution, z = 1.28 q = 3,000 365 (28 + 11) + 1.28(24.980) − 180 = 172.52 → 173 6. awar d: 0.50 out of 0.50 points http://e z to.mhe c loud.mc gr a w- hill.c om/hm.tpx? todo= pr intvie w 7/10 1/29/2014 Assignme nt Pr int Vie w Problem 20-21 Item X is a s tandard item s toc k ed in a c ompany 's inv entory of c omponent parts . Eac h y ear the firm, on a random bas is , us es about 1,800 of item X, whic h c os ts \$25 eac h. Storage c os ts , whic h inc lude ins uranc e and c os t of c apital, amount to \$10 per unit of av erage inv entory . Ev ery time an order is plac ed for more item X, it c os ts \$10. a. Whenev er item X is ordered, what s hould the order s iz e be? (Round your answer to the nearest whole num ber.) Order s iz e 60 b. What is the annual c os t for ordering item X? (Round your answer to 2 decim...
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## This note was uploaded on 01/29/2014 for the course MAN 4504 taught by Professor Georgekyparisis during the Fall '09 term at FIU.

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