Star enterprises is a seller of lamps in this case consider, Ask an Expert

Management Studies

Star enterprises is a seller of lamps. In this case consider the replenishment/stocking decision for product named Lamp A. Star purchases Lamp A from a supplier and then sells them to customers. The mean monthly demand for Lamp A is normal. It has a mean and standard deviation of 150 and 50, respectively. The lead-time for Lamp A is also normally distributed with mean of 1 month and standard deviation of 15 days (Assuming there are 30 days in a month). Star purchases Lamp A from the supplier for $30 per unit and uses an annual holding/carrying cost rate of 12%. The fixed cost associated with placing an order of Lamp A to the supplier is $80. Assume that Star estimates a $100 cost associated with each stock-out (independent of the units backordered). It targets a fill rate of 98% for Lamp A. FInd the following -

a) What is Stars’s Economic Order Quantity (EOQ), Reorder point and the associated Average monthly total cost of the operation?

b) Is this replenishment operation a Pull or a Push system?

View complete question

Operation Management, Management Studies

Category:- Operation Management
Reference No.:- M92586292

Have any Question?Write your Review or question?

Related Questions in Operation Management

Jennifer is playing a game the game involves choosing a

Jennifer is playing a game. The game involves choosing a series of boxes to open with the final outcomes of win (earning one point), lose (earning zero point) or draw (setting with a half point). The game begins with Jen ...

1 discuss two strategies that can be used for leading

1. Discuss two strategies that can be used for leading change. How do these strategies increase stakeholder support and create momentum for a change initiative to be successful? Why might you want to consider including t ...

1 how does one determine whether or not they have standing

1. How does one determine whether or not they have standing to appear in criminal court? Once standing is confirmed, how does the court administer pre-trial management procedures such as notice, right to counsel, and whe ...

1 what is ldquoglobalizationrdquo in how many ways can you

1. What is “Globalization”? In how many ways can you answer that question? 2. Now, taking a look back at week 6, 7, describe how "globalization" connects with some of the articles you have read.

1 according to ceo foraker what are the values that drive

1. According to CEO Foraker, what are the values that drive Annie's? Why did CEO Foraker and Annie's decide to go public? What products does Annie's sell? What are the negatives for Annie's in going public? 2. Why did ...

This journal entry will help you recognize how core values

This journal entry will help you recognize how core values support a leadership style and brand. Reflect upon the leadership theories and styles you have studied thus far in the course. Choose three personal, core values ...

1 assuming you work as an intern for dunkinrsquo donuts and

1. Assuming you work as an intern for Dunkin’ Donuts, and you are asked to develop a social media campaign for a new glazed muffin. The objective of the campaign is to increase awareness and trail of the new line of muff ...

1 for this weeks dq focus on challenges working virtually

1. For this week's DQ, focus on challenges working virtually has created for everyone individually and organizationally regarding communication. Consider the challenges of both face-to-face communication and contrast tho ...

Best buy part a at a best buy store the forecast for the

Best Buy Part A) At a Best Buy store, the forecast for the annual demand of a Motorola cell phone is 15600. Demand forecasts are updated weekly and the unit time is one week. Motorola takes 2 weeks to supply an order and ...

1 explain in your own words why this is an effective

1. Explain in your own words why this is an effective guideline for SPC (Statistical Process Control). DETECTION RULE ONE: a lack of control is indicated whenever a single point falls out-side the (three sigma) control l ...

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