Everett ltd is a company who sells cnc machines to, Ask an Expert

Management Studies

Everett Ltd is a company who sells CNC machines to universities for educational purposes. The company observes the number of CNC machines on its hand (call it i) at the beginning of a month. If at the beginning of a month i ≤ 1, then the company orders 3 - i machines (so, the number of inventories is completed to 3). If i ≥ 2, then 0 machines are ordered. It is known that delivery of all ordered machines is immediate. The customers are equally likely to demand 0, 1, 2, or 3 machines from Everett Ltd. during the month. After fulfilling these demands, the company observes the inventory level at the beginning of the next month.

a) Construct the one step transition matrix for the above process.

b) What proportion of time no inventories exists (0 units) on hand at the beginning of a typical month?

c) Assume that there is a shortage cost of $1000 per machine for each demand that is not met by Everett Ltd. during a month. What is the expected amount of this shortage cost for a month?

View complete question

Operation Management, Management Studies

Category:- Operation Management
Reference No.:- M92185096

Have any Question?Write your Review or question?

Related Questions in Operation Management

1 average demand for a particular item is 1200 units per

1. Average demand for a particular item is 1,200 units per year. It costs $100 to place an order for this item, and it costs $24 to hold one unit of this item in inventory for one year. If the EOQ model is used what woul ...

1 customer value is defined as the customers evaluation of

1. Customer value is defined as the customer's evaluation of the perceived difference between all the benefits and all the costs of a marketing offer relative to those of competing offers. T/F 2. An aspect of managing se ...

Assignment - identifying variables the assignment

Assignment - Identifying Variables The assignment instructions are as follows: 1. Identify all the variables necessary to answer your research questions(remember which one is dependent (effect), which is independent (cau ...

Nbspusing workforce scheduling to lower labour costs 1

Using Workforce Scheduling to Lower Labour Costs, 1. Discuss the challenges the organisations have in relation to workforce scheduling. 2. Explain why workforce scheduling technology is particularly suitable to large org ...

1 answer in 250-300 words what is meant by the term

1. Answer in 250-300 words. What is meant by the term resources fit as it applies to evaluating a diversified company's business lineup? 2. Answer in 250-300 words. Identify and briefly describe at least four types of co ...

Ethical issuethis issue involves whether companies should

Ethical Issue This issue involves whether companies should have the right to track employees’ company smartphones and monitor their personal social networking sites. Employers argue that companies should be allowed to tr ...

Canine gourmet super breath dog treats are sold in boxes

Canine Gourmet Super Breath dog treats are sold in boxes labeled with a net weight of 15ounces (425grams) per box. Each box contains 10 individual 1.5-ounce packets. To reduce the chances of shorting the customer, produc ...

Do you think a good leader needs to exhibit both a task

Do you think a good leader needs to exhibit both a task approach and a people approach to managing people? In other words, why do you think it is important for a leader to focus on the goal or task at hand, but also be a ...

1 identify and explain the five common international entry

1. Identify and explain the five common international entry modes? 2. What are the basic forms of power and how can they help me achieve my desired outcomes? 3. How can sharing power increase my power? 4. How do influenc ...

1 discuss why patients are often reluctant to complain

1. Discuss why patients are often reluctant to complain about their abusers and caregivers. 2. When a health care provider reports abuse, should the accuser’s identity be revealed to the accused? Explain your answer. 3. ...

4,153,160 Questions Asked
13,132 Experts
2,558,936 Questions Answered

Ask Experts for help!!

Looking for Assignment Help?

Start excelling in your Courses, Get help with Assignment

Write us your full requirement for evaluation and you will receive response within 20 minutes turnaround time.

Ask Now Help with Problems, Get a Best Answer

Recent Questions

Ask Operation Management Expert