Single-period. This type of problem can be recognized when a probability distribution or empirical Problem 8distribution for demand for a “perishable” item is given along with unit shortage and excess costs, orinformation that can be used to calculate them. Use these steps to solve the problem:1. Compute the optimal service level using Formula 13–17.2. If the given distribution is uniform or normal, use that to obtain the exact stocking level.3. If the distribution is Poisson or empirical, SL will fall between two cumulative frequencies.Round up to the higher frequency to find the optimal stocking level. Note: If the distribution isempirical, first obtain the cumulative frequencies or probabilities.A firm that installs cable TV systems uses a certain piece of equipment for which it carries two spareparts as optimal. The parts cost $500 each and have no salvage value or useful life after one period.Part failures can be modeled by a Poisson distribution with a mean of two failures during the useful life of the equipment. Holding and disposal costs are negligible. Estimate the apparent range ofshortage cost
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.
Single-period. This type of problem can be recognized when a probability distribution or empirical Problem 8
distribution for demand for a “perishable” item is given along with unit shortage and excess costs, or
information that can be used to calculate them. Use these steps to solve the problem:
1. Compute the optimal service level using Formula 13–17.
2. If the given distribution is uniform or normal, use that to obtain the exact stocking level.
3. If the distribution is Poisson or empirical, SL will fall between two cumulative frequencies.
Round up to the higher frequency to find the optimal stocking level. Note: If the distribution is
empirical, first obtain the cumulative frequencies or probabilities.
A firm that installs cable TV systems uses a certain piece of equipment for which it carries two spare
parts as optimal. The parts cost $500 each and have no salvage value or useful life after one period.
Part failures can be modeled by a Poisson distribution with a mean of two failures during the useful life of the equipment. Holding and disposal costs are negligible. Estimate the apparent range of
shortage cost
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