Lieutenant Commander Data is planning to make his monthly (every 30 days) trek t
ID: 470596 • Letter: L
Question
Lieutenant Commander Data is planning to make his monthly (every 30 days) trek to Gamma Hydra City to pick up a supply of isolinear chips. The trip will take Data about four days. Before he leaves, he calls in the order to the GHC Supply Store. He uses chips at an average rate of nine per day (seven days per week) with a standard deviation of demand of one per day. He needs a 98 percent service probability.
If he currently has 35 chips in inventory, how many should he order? (Round your answer to the nearest whole number.)
What is the most he will ever have to order? (Round your answer to the nearest whole number.)
Lieutenant Commander Data is planning to make his monthly (every 30 days) trek to Gamma Hydra City to pick up a supply of isolinear chips. The trip will take Data about four days. Before he leaves, he calls in the order to the GHC Supply Store. He uses chips at an average rate of nine per day (seven days per week) with a standard deviation of demand of one per day. He needs a 98 percent service probability.
Explanation / Answer
review period
T
30
days
lead time
L
4
days
daily demand
d
9
per day
monthly demand
D
252
(=7 days*9*4 weeks)
standard deviation
s
1
per day
service probability
98%
z
2.05375
a. If he currently has 35 chips in inventory, how many should he order? (Round your answer to the nearest whole number.)
Current inventory
I
35
chips
std dev of review period, S = sqrt ((T+L)(s^2))
S
5.83095
Optimal Order Quantity, q = d(T+L)+z*S-I
q
283
chips
b. What is the most he will ever have to order? (Round your answer to the nearest whole number.)
The most he will ever have to order, is when the inventory is 0
Thus, the most he will ever have to order =q max = d(T+L)+z*S-0
q max
318
chips
review period
T
30
days
lead time
L
4
days
daily demand
d
9
per day
monthly demand
D
252
(=7 days*9*4 weeks)
standard deviation
s
1
per day
service probability
98%
z
2.05375
a. If he currently has 35 chips in inventory, how many should he order? (Round your answer to the nearest whole number.)
Current inventory
I
35
chips
std dev of review period, S = sqrt ((T+L)(s^2))
S
5.83095
Optimal Order Quantity, q = d(T+L)+z*S-I
q
283
chips
b. What is the most he will ever have to order? (Round your answer to the nearest whole number.)
The most he will ever have to order, is when the inventory is 0
Thus, the most he will ever have to order =q max = d(T+L)+z*S-0
q max
318
chips
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