OfficePro sells calculators at a rate of 3 per day. When the company places an order from its supplier, the lead time varies. The distribution of the lead time is: L (in days) P(L) 8 0.3 9 0.3 10 0.2 11 0.08 12 0.07 13 0.05 The figures represent days and lead time respectively. The company has already found the optimal order size is 80 calculators. What should be the reorder level if the company will take no more than a 10 percent chance of being out of calculators when an order is placed?

OfficePro sells calculators at a rate of 3 per day. When the company places an order from its supplier, the lead time varies. The distribution of the lead time is: L (in days) P(L) 8 0.3 9 0.3 10 0.2 11 0.08 12 0.07 13 0.05 The figures represent days and lead time respectively. The company has already found the optimal order size is 80 calculators. What should be the reorder level if the company will take no more than a 10 percent chance of being out of calculators when an order is placed?

Name: OfficePro sells calculators at a rate of 3 per day. When the company p
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Description: OfficePro sells calculators at a rate of 3 per day. When the company places an order from its supplier, the lead time varies. The distribution of the lead time is:L (in days)P(L)80.390.3100.2110.08120.07130.05The figures represent days and lead time

Practical Management Science

6th Edition

ISBN:9781337406659

Author:WINSTON, Wayne L.

Publisher:WINSTON, Wayne L.

Chapter8: Evolutionary Solver: An Alternative Optimization Procedure

Section8.6: Fitting An S-shaped Curve

Problem 12P

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