4QA3 F12 Week 8 Lecture Notes

# One can use this approximation 4qa3 f12 s

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Unformatted text preview: omi 23 ●  Here, the “order up to Q” policy is employed. The objective is to aind the value of Q. ●  Find Q from F (Q) = α ●  Suppose that σ and µ; are standard deviation and mean of demand in the review period: 1. Find Q from n(Q) = (1 − β ) µ, 4QA3 F12 2. Compute L ( z ) from L ( z ) = n(Q ) σ , 3. Determine z based on Table A-4, 4. Q = σ z + µ. A. Gandomi 24 Problem 23 p. 283 For the previous problem of Weiss’s paint store, suppose that the paint is reordered on a monthly basis rather than on a continuous basis. a)  Using the (Q,R) solution you obtained in part (a) of Problem 14, determine appropriate values of (s , S). b)  Suppose that the demand during the months of January to June were If the starting inventory in January was 26 cans of paint, determine the number of units of paint ordered in each of the months January to June following the (s , S) policy found in (a). 4QA3 F12 A. Gandomi 25 ●  The essential characteristic of these models is that only a single time period, usually of Sinite length, is relevant and...
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