To make a product it costs $24 per liter. The importation cost is a fixed cost of $ 150 additional of the unit costs. The time that takes from placing the order to receiving it is 5 weeks. During this time the average consumed is 80 liters with a std dev. of 4 liters. If the products ends the costs is $45 per liter. They work 52 weeks a year. The anual interest is 20% 1)What is the order size and reorder point if we want to accomplish 90% of demand in the cycles? 2)What is the order size and reorder point if we want to minimize average costs? what would be service level type 2?
To make a product it costs $24 per liter. The importation cost is a fixed cost of $ 150 additional of the unit costs. The time that takes from placing the order to receiving it is 5 weeks. During this time the average consumed is 80 liters with a std dev. of 4 liters. If the products ends the costs is $45 per liter. They work 52 weeks a year. The anual interest is 20% 1)What is the order size and reorder point if we want to accomplish 90% of demand in the cycles? 2)What is the order size and reorder point if we want to minimize average costs? what would be service level type 2?
Advanced Engineering Mathematics
10th Edition
ISBN:9780470458365
Author:Erwin Kreyszig
Publisher:Erwin Kreyszig
Chapter2: Second-order Linear Odes
Section: Chapter Questions
Problem 1RQ
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To make a product it costs $24 per liter. The importation cost is a fixed cost of $ 150 additional of the unit costs. The time that takes from placing the order to receiving it is 5 weeks. During this time the average consumed is 80 liters with a std dev. of 4 liters. If the products ends the costs is $45 per liter. They work 52 weeks a year. The anual interest is 20%
1)What is the order size and reorder point if we want to accomplish 90% of demand in the cycles?
2)What is the order size and reorder point if we want to minimize average costs? what would be service level type 2?
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