The planned weekly demand for new components from a German manufacturer is 5,000 units. The standard deviation is unknown, one estimate is 100 units per week (very stable demand), the other 1,000 units per week (very volatile demand). The weight and cost per unit is 2lbs and $10 respectively. The holding cost rate is 30% and the TSL = 99.5% (Z = 2.576). Assume operations take place 52 weeks per year. Assume 2 weeks of production/prep lead time with a standard deviation of 0 days; ordering costs are $1,000 per order. In both cases, the shipping quantity will be 20,000 units (a container load). GMX. Transit time is 4 weeks, standard deviation of 1 week. The rate per CL is $3,200. NHK. Transit time is 4 weeks, standard deviation of 0.5 weeks. The rate per CL is $4,600. What is the recommendation for each of the two values for the standard deviation? ●

The planned weekly demand for new components from a German manufacturer is 5,000 units. The standard deviation is unknown, one estimate is 100 units per week (very stable demand), the other 1,000 units per week (very volatile demand). The weight and cost per unit is 2lbs and $10 respectively. The holding cost rate is 30% and the TSL = 99.5% (Z = 2.576). Assume operations take place 52 weeks per year. Assume 2 weeks of production/prep lead time with a standard deviation of 0 days; ordering costs are $1,000 per order. In both cases, the shipping quantity will be 20,000 units (a container load). GMX. Transit time is 4 weeks, standard deviation of 1 week. The rate per CL is $3,200. NHK. Transit time is 4 weeks, standard deviation of 0.5 weeks. The rate per CL is $4,600. What is the recommendation for each of the two values for the standard deviation? ●

Practical Management Science

6th Edition

ISBN:9781337406659

Author:WINSTON, Wayne L.

Publisher:WINSTON, Wayne L.

Chapter2: Introduction To Spreadsheet Modeling

Section: Chapter Questions

Problem 20P: Julie James is opening a lemonade stand. She believes the fixed cost per week of running the stand...

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