Anvils Works’ requires, on average, 2800 tons of aluminum each week, with a standarddeviation of 1000 tons. The lead time to receive its orders is 10 weeks. The holdingcost for one ton of aluminum for one week is $11. It operates with a 0.98 in-stockprobability.a. On average, how many tons does it have on order?b. On average, how many tons does it have on hand?c. If its average inventory was 5000 tons, what would be its average holding cost perweek?d. If its average inventory was 10,000 tons, what would be its average holding cost perton of aluminum?e. Suppose its on-hand inventory is 4975 tons, on average. What in-stock probabilitydoes it offer to its customers?
Critical Path Method
The critical path is the longest succession of tasks that has to be successfully completed to conclude a project entirely. The tasks involved in the sequence are called critical activities, as any task getting delayed will result in the whole project getting delayed. To determine the time duration of a project, the critical path has to be identified. The critical path method or CPM is used by project managers to evaluate the least amount of time required to finish each task with the least amount of delay.
Cost Analysis
The entire idea of cost of production or definition of production cost is applied corresponding or we can say that it is related to investment or money cost. Money cost or investment refers to any money expenditure which the firm or supplier or producer undertakes in purchasing or hiring factor of production or factor services.
Inventory Management
Inventory management is the process or system of handling all the goods that an organization owns. In simpler terms, inventory management deals with how a company orders, stores, and uses its goods.
Project Management
Project Management is all about management and optimum utilization of the resources in the best possible manner to develop the software as per the requirement of the client. Here the Project refers to the development of software to meet the end objective of the client by providing the required product or service within a specified Period of time and ensuring high quality. This can be done by managing all the available resources. In short, it can be defined as an application of knowledge, skills, tools, and techniques to meet the objective of the Project. It is the duty of a Project Manager to achieve the objective of the Project as per the specifications given by the client.
Anvils Works’ requires, on average, 2800 tons of aluminum each week, with a standard
deviation of 1000 tons. The lead time to receive its orders is 10 weeks. The holding
cost for one ton of aluminum for one week is $11. It operates with a 0.98 in-stock
probability.
a. On average, how many tons does it have on order?
b. On average, how many tons does it have on hand?
c. If its average inventory was 5000 tons, what would be its average holding cost per
week?
d. If its average inventory was 10,000 tons, what would be its average holding cost per
ton of aluminum?
e. Suppose its on-hand inventory is 4975 tons, on average. What in-stock probability
does it offer to its customers?
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