7/25/2019 Solutions Review Questions Session 8

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to

Review

Questions

Session

8

ChaseJacobsChapter17Problem10(incoursepackage)

D=15600;S=$31.20;H=$0.1

EOQ=Q*=H

SD**23120 [Actuallynotaskedinthisquestion]

z0.98=2.05

ROP=300*4+2.05*90*2=1569

Thenewsafetystock=(2.05*90*2)/2 correspondstoazvalueof2.05/2=1.025.

Thenewservicelevel=Prob(z1.025)=84.7%.

ChaseJacobsChapter17Problem16(incoursepackage)

D=5000;S=$10;H=0.2*$3=$0.6

EOQ=Q*=H

SD**2408bottles

z95%=1.645

ROP=100*3+1.645*30*3=386(Roundup!)

Motorola

D=208,000boardsperyear S=$54perorder H=0.20.78=$0.156perboardyear

EOQ=Q*=H

SD**2=12,000circuitboards

Weeklydemandrate=208000

52=4000boardsperweek.

Leadtimebeingbetween1and2weeksresultsinthevariabledemandduringleadtime(mean

demandduringleadtime=6000,std.dev.duringleadtime=500).

3%chanceofstockoutimpliesthattheprescribedservicelevel =0.97.

ROP=6000

+1.88*500=

6941

circuit

boards

(round

up!)

Q=12,000, ROP=6941

Timbuk2Inc.

Howmuchtoorder:EOQ=Sqrt(2*1000*50*25/0.1)=5000

ROP=1000*4+2.576*300*Sqrt(4)=5546(roundup!)

NewSL: z=(ROP1000*4)/(300*2)=0; hencetheSL=50%