company operates 365 days a year and its annual demand for a product is 18,250 units. The company estimates that the standard deviation for daily demand is 15 units.
Problem 1A
company operates 365 days a year and its annual demand for a product is 18,250 units. The company estimates that the standard deviation for daily demand is 15 units. The cost to place an order is $31.20 and the time from ordering to receipt is 36 days. The annual inventory carrying cost is $0.10 per unit. Determine the optimal ordering quantity per order and find the reorder point necessary to provide a 98 percent service probability(z=2.06)
Problem 2
University Drug Pharmaceuticals orders its antibiotics every two weeks (14 days) when a salesperson visits from one of the pharmaceutical companies. Tetracycline is one of its most prescribed antibiotics, with average daily demand of 2,000 capsules. The standard deviation of daily demand was derived from examining prescriptions filled over the past three months and was found to be 800 capsules. It takes five days for the order to arrive. University Drug would like to satisfy 98 percent of the prescriptions. The salesperson just arrived and there are currently 25,000 capsules in stock. How many capsules should be ordered for the current visit of the salesperson?
Looking for a Similar Assignment? Order now and Get 10% Discount! Use Coupon Code "Newclient"
