4QA3 F12 Week 8 Lecture Notes

# 4qa3 f12 a gandomi 19 setting qeoq and

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Unformatted text preview: compute R = µ + σ z. 4.  Using the same z value, aind 1- F(R) from Table A- 4. 5.  Find Q from: n( R ) 2 K λ " n( R ) % Q= + +\$ ' 1 − F ( R) h # 1 − F ( R) & 2 6.  Go back to Step 2, continue until R and Q converge. 4QA3 F12 A. Gandomi 19 ●  ●  ●  Setting Q=EOQ and ainding R from n(R) = (1−β)Q will generally give a good approximation of the optimal solution. Calculations are easier for Type 1 service, however, Type 2 service is generally the accepted deainition of service. Optimal inventory policies resulting from Type 1 and Type 2 service might be signiaicantly different. 4QA3 F12 A. Gandomi 20 Problem 15 p. 279 After taking a production seminar, Al Weiss, the owner of the paint store mentioned in the previous question, decides that his stock- out cost of \$10 may not be very accurate, and switches to a service level model. He decides to set his lot size by the EOQ formula, and determines his reorder point so that there is no stock- out in 90 percent of...
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## This document was uploaded on 04/01/2014.

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