Question

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QUESTION 18 01 of 1000 and standard deviation (ej ar 10. He sais papers for $3 and pay $1 for A new vendor is trying to perfect his business in order admire the money he can save for a new car Persare normale with a them. Umolders ed SOS se value. What is this optimal service level and stock out probability? A Service Levocet probably-02 Services 07, p. Cevice.r.3 Device 02.0 E Service 01 QUESTION 19 The crown below w our 1 ES 2 ADES с все ESCE

Answer 1

Question 18: A. Service Level = 0.8, Stockout Probability = 0.2

Selling Price (P) = $3

Cost Price (C) = $1

Salvaging Value (S) = $0.5

Cost of Understocking (Cu) = P - C = $2

Cost of Overstocking (Co) = C - S = 1 - 0.5 = $0.5

Optimum Service Level = Cu/(Cu + Co) = 2/2.5 = 0.8

Stockout Probability = 1 - 0.8 = 0.2

Question 19:E. BCE , 12

Path BCE is a path with maximum duration of completion.

So Critical Path : BCE

Project Completion Duration :12