Question

i want help in question 14 ( yellow spot) please!

(b) Given your answer to (a), what are the mean and standard deviation of the number op chassis used by the amplifier stage during the 15 minutes it takes the chassis stage to The Lessons of History Part I build a chassis? (c) If Enginola wants to be sure that the probability of an amplifier chassis in stock when he/she needs one is at least 99 percent, how large sho operator finding 14. Chairish-Is-The-Word, Inc., manufactures top-end hardwood chairs that are sold through a variety of retail outlets. The most popular model sells (wholesale) for $400 per chair and costs $300 to make. Past data show that average monthly demand is 1,000 chairs with a standard deviation of 200 chairs and that the normal distribution is a reasonable fit. CITW uses a 20 percent annual interest charge to est to carry one chair in stock for 1 month is $300(0.20)/12 $5. (a) If all orders are backlogged and the cost of lost customer goodwill from carryinga single chair on backorder is $20, what order-up-to (base stock) level should CITW use? (b) If any order not filled from stock is lost (i.e., the customer buys it from the competition), what order-up-to level should CITW use? e) Explain the reason for the difference between your answers in parts (a) and (b) 15. Jill the office manager of a desktop publishing outfit, stocks replacement toner cartrid laser printers. Demand for cartridges is approximately 30 per year and is quite variable (.e can be represented by the Poisson distribution). Cartridges cost $100 each and require 3 weeks to obtain from the vendor. Jill uses a (Q.r) approach to control stock levels. (a) If Jill wants to restrict replenishment orders to twice per year on average, what bac size Q should she use? Using this hatch the kanban level m? imate inventory carrying costs, so that the cost oi

Answer 1

14)

Answer: a) So we have mean demand 1000 Standard deviation 200 chairs Considering a 95 % service level. Ž1-64 we have the following-1000-1 .64 * 200 So we have the order up to basemodel-1000 328 -672 chairs. b) If there is a loss of 328 chairs due to loss to competitor then CITW should use the rder up to level of 1000 +1.64 * 200 1328 chairs c) Basic difference in the answer was to take the bare minimum in case of base not filled situation, hence it needs to keep the extra stock for safety So extra stock would be 328 as per 95 % service level