Multi-item Joint Replenishment EOQ Homework The Lamps Store sells 2 types of tab
ID: 2507699 • Letter: M
Question
Multi-item Joint Replenishment EOQ Homework
The Lamps Store sells 2 types of table lamps: classic and contemporary. The annual demand for the classic table lamp is 200 units while the annual demand for the contemporary table lamp is 300 units.
Assume each lamp costs Lamps Store $50 to purchase from its supplier, and the fixed ordering cost is $300 each time.
For each type of table lamps ordered and delivered on the same truck, an additional fixed handling cost of $100 is charged. The company has a holding cost of 20 percent of the unit purchasing cost.
The Lamps Store decides to order 2 models of lamps at the same time using the same truck. What is the optimal lot size for each model?
Quantity Discount Homework
SportsElite.com sells tennis rackets online. Demand for their popular racket SE-1 is 50 units per month. The fixed ordering cost for SportsElite.com is $300 each time placing an order. Holding cost is 30% of unit purchasing cost. The price charged by the supplier is as follows.
Quantity
Unit price
1
Quantity
Unit price
1
Explanation / Answer
Newsboy Problem Homework
Nara is a fashion apparel and accessories chain store that procures a line of new shorts at $10 each from its European supplier. Unfortunately, at the time of order placement, demand is still unknown. Nara forecasts that its demand is normally distributed with mean of 2100 and a standard deviation of 1200 units. Nara sells these shorts at $22 each. Unsold shorts have little salvage values and they would be donated to charity. Based on this information:
How many shorts should Nara buy from its supplier to maximize expected profit?:
e) If 3000 ---------ordered then the corresponding z-statistic is 3000 2100 /1200= 0.75 .
Now look up expected lost sales with the Standard Normal distribution in the Standard Normal Loss Function Table: L(0.75) 0.1312 .
Convert that lost sales into the expected lost sales with the L(z ) 1200 0-.1312 =157.4 .
Expected actual demand distribution: sales = expected demand
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