Regional Supermarket is open 360 days per year. Daily use of cash register tape averages 12 rolls. Usage appears normall
Posted: Fri May 20, 2022 9:20 am
Regional Supermarket is open 360 days per year. Daily use of
cash register tape averages 12 rolls. Usage appears normally
distributed with a standard deviation of 2 rolls per day. Each time
the supermarket orders the tape it costs $1, and each roll costs
the supermarket $5. Annual holding cost is 10 percent of the
purchase price per roll. Lead time is two days.
a. What is the EOQ?
b. What ROP will provide a lead time service level of 96
percent?
c. What is the expected number of units short per cycle with 96
percent? Per year?
d. What is the annual service level?
e. If the shortage cost for each roll is $20, what is the total
expected annual cost?
cash register tape averages 12 rolls. Usage appears normally
distributed with a standard deviation of 2 rolls per day. Each time
the supermarket orders the tape it costs $1, and each roll costs
the supermarket $5. Annual holding cost is 10 percent of the
purchase price per roll. Lead time is two days.
a. What is the EOQ?
b. What ROP will provide a lead time service level of 96
percent?
c. What is the expected number of units short per cycle with 96
percent? Per year?
d. What is the annual service level?
e. If the shortage cost for each roll is $20, what is the total
expected annual cost?