Production and Operations Analysis, Seventh Edition
Production and Operations Analysis, Seventh Edition
7th Edition
ISBN: 9781478623069
Author: Steven Nahmias, Tava Lennon Olsen
Publisher: Waveland Press, Inc.
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Chapter 5, Problem 37AP
Summary Introduction

Interpretation:Number of spare blades to be purchased is to be calculated.

Concept Introduction:

Normal distribution is the probability function with continuous series. It is bell shaped distribution function where mean, median and mode are same.

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A plastic canister manufacturing company maintains an annual safety stock of 500 units of plastic caps. If the company places an annual purchase order for 1,800 units of these caps, its average annual inventory, in units, is between: ( )1,500 and 1,300 ( )3,200 and 3,000 ( )2,400 and 2,200 ( )1,200 and 1,000 ( )1,900 and 1,700
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30) XYZ Company The XYZ Company uses 175 handles per day.  The company operates 300 days per year.  It costs $2.00 to carry one handle in inventory for one year.  When handle inventory is low, an order is sent to the fabrication department to manufacture more handles.  Fabrication can produce handles at a rate of 1500 per day and send the handles over to assembly while production is in progress.  The setup for each production run costs $500. Assume the XYZ company orders 9,000 handles at a time (not necessarily the economic order quantity). The order receipt period = _____ days. Group of answer choices a) 6.0 b) 5.8 c) 30.0 d) 51.4 e) 50.0
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