Jill estimates that the annual demand of a part can be, Ask an Expert

Management Studies

Jill estimates that the annual demand of a part can be approximated as a Poisson distribution with parameter value of 15. It takes 50 days to receive a replenishment order. The firm uses an annual interest rate of 10% and each unit of this part costs $100. The ordering cost is $20 per order. A shortage causes the customer to buy from competition, the cost of which is estimated to be S50. Suggest an appropriate inventory model that Jill should use, indicate the reasons for your choice, and solve for the corresponding how much' and 'when' questions?

View complete question

Operation Management, Management Studies

Category:- Operation Management
Reference No.:- M92542416

Have any Question?Write your Review or question?

Related Questions in Operation Management

1 describe how a business analyst might use decision

1. Describe how a business analyst might use decision analysis to identify a situation. 2. What is a chi-square test? When is a chi-square test appropriate? How do you interpret the resulting p-values for such a test? Gi ...

A cafeteria serving line has a coffee urn from which

A cafeteria serving line has a coffee urn from which customers serve themselves. Arrivals at the urn follow a Poisson distribution at the rate of three per minute. In serving themselves, customers take about 15 seconds, ...

Case studyin december 2016 arshad ali joined imperial

Case Study In December 2016, Arshad Ali joined Imperial Computers Ltd. (ICL) as a Senior Programmer, with a handsome pay. Prior to this job, he worked successfully as an assistant programmer in Gem Computers (Gem). Arsha ...

How does the price of an ideal product fit with the price

How does the price of an IDEAL product fit with the price they are willing to pay? NOTE: Be sure to indicate what their preferred price is and how much it costs to produce the ideal product. b. Do you need to change the ...

Youre managing the inventory of a regional hospital and one

You're managing the inventory of a regional hospital and one of your most critical items has an annual demand of 6,000 units per year. The unit cost is $100; the holding cost is $10 per unit per year and the ordering cos ...

1 explain the concept of a bottleneck giving an example

1. Explain the concept of a bottleneck, giving an example from school or work. 2. Why did Nintendo choose to not make its video game consoles backward compatible? What were the advantages and disadvantages of this strate ...

Apple has the highest market capitalization in the united

Apple has the highest market capitalization in the United States. In the last analysis on the stock market, Apple was worth 816.54 billion dollars. Apple is trying to compete with Samsung to make the best phones in the m ...

Eoq a jewelry firm buys semiprecious stones to make

EOQ. A jewelry firm buys semiprecious stones to make bracelets and rings. The supplier quotes a price of $8 per stone for quantities of 600 stones or more, $9 per stone for orders of 400 to 599 stones, and $10 per stone ...

Using bmw as the company describe the nature of business of

Using BMW as the company describe the nature of business of the selected organisation and explain the impact of fluctuations of the exchange rate on business performance. Identify and explain three factors that may have ...

1 what are the three primary communication areas that a

1. What are the three primary communication areas that a performance management system (PMS) should address? What are the most effective ways for these areas to be communicated to managers and employees? Why is it import ...

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