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 40AP
Summary Introduction
Interpretation:Reorder level of radios is to be determined.
Concept Introduction:
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Students have asked these similar questions
Problem 12-37 (Algo)
A small grocery store sells fresh produce, which it obtains from a local farmer. During the strawberry season, demand for fresh
strawberries can be reasonably approximated using a normal distribution with a mean of 36 quarts per day and a standard deviation of
5 quarts per day. Excess costs run 50 cents per quart. The grocer orders 41 quarts per day.
Use Table.
What is the implied cost of shortage per quart? (Round your z value to 2 decimal places, your service level probability to 4 decimal
places and your final answer to 2 decimal places.)
Shortage cost per quart
Consider a fixed period inventory model. The daily demand of the product has a mean of 30 and standard deviation of 4; orders are placed every 18 days and shipment lead time is 6 days. The store has a service policy of 96%. What is the inventory required?
Brynn is the owner of a spa store that operates 50 weeks per year. Dazzle Shampoo is a high margin stock-keeping unit (SKU), but the product goes out of stock frequently. She decides to use a fixed-quantity system (FQS) and orders boxes of Dazzle Shampoo containing 10 bottles per box from a vendor 160 miles away. She collects the following data with respect to the sales of Dazzle Shampoo.
Demand
10 boxes per week
Order Cost
$40 per order
Item Cost
$80 per box per year
Inventory-Holding Cost
15 percent per year
Lead Time
3 weeks
Standard Deviation in Weekly Demand
6
Service Level
96 percent
Using the given data, it can be concluded that the economic order quantity (EOQ) of the Dazzle Shampoo boxes is
a.
more than 25 but less than or equal to 35 boxes.
b.
less than 25 boxes.
c.
more than 35 but less than or equal to 45 boxes.
d.
more than 55 boxes.
Chapter 5 Solutions
Production and Operations Analysis, Seventh Edition
Ch. 5.2 - Prob. 1PCh. 5.2 - Prob. 2PCh. 5.2 - Prob. 4PCh. 5.3 - Prob. 7PCh. 5.3 - Prob. 9PCh. 5.3 - Prob. 12PCh. 5.5 - Prob. 16PCh. 5.5 - Prob. 18PCh. 5.6 - Prob. 21PCh. 5.7 - Prob. 24P
Ch. 5.7 - Prob. 25PCh. 5.7 - Prob. 26PCh. 5.7 - Prob. 27PCh. 5 - Prob. 28APCh. 5 - Prob. 31APCh. 5 - Prob. 32APCh. 5 - Prob. 33APCh. 5 - Prob. 37APCh. 5 - Prob. 38APCh. 5 - Prob. 40APCh. 5 - Prob. 41APCh. 5 - Prob. 43APCh. 5 - Prob. 44APCh. 5 - Prob. 45APCh. 5 - Prob. 46APCh. 5 - Prob. 47APCh. 5 - Prob. 48APCh. 5 - Prob. 49APCh. 5 - Prob. 50APCh. 5 - Prob. 51AP
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