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Assignment help 1803

by | Apr 10, 2023 | Posted Assignments

1.      A producer operates on 8 units/day in the assembly line. The OM department assumes that the process has a normal distribution and standard deviation of the line is 3 units/day. The ordering cost is $10 and holding cost/roll/year is $0.30. Lead time is 2 days. (Total work day/year is 250 days) (SHOW YOUR WORK)

a)     What is the economic order quantity?

b)     What is the safety stock level for 97% order-cycle service level?

c)     What is the safety stock level for 99% order-cycle service level?

d)     What is reorder point for 97% order-cycle service level?

e)     Calculate reorder point for 99% order-cycle service level?

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