Answered: Dennis Odle is the production vice…

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

See similar textbooks

Related questions

Question

Dennis Odle is the production vice president of Century Electrics Company, a very large manufacturer of printers for computer systems. Each printer uses a fractional horsepower electric motor drive mechanism. Dennis has estimated that the cost of being out of stock for this particular motor is P1,300 for each unit Century is short while the carrying cost for each stock is P650. Using an EOQ model, Dennis has already calculated that the economic order quantity of this motor is 7,200 with an average usage of 60 motors a day. The normal lead time is 10 days. a.How many alternatives for the number of the safety stock do we have? for continuous question:If 0 being the first alternative of the Safety Stock and the highest alternative being the last... b.What is the total annual stockout cost of the first alternative? c.What is the total annual safety stock cost of the last alternative? d.What is the ROP (Lead time demand + Safety stock)?

The table shows the record of the
past demand after reorder point.
Demand after reorder point
Frequency (days)
500
10
580
11
600
52
680
7
750
2.

Expert Solution

Step by step

Solved in 2 steps with 1 images

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, economics and related others by exploring similar questions and additional content below.

Similar questions