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for the law firm. The desired service level is 95%. The corresponding Z =1.64.

NOTE: Show all steps. Solve problems using EXCEL.

Date: 7-19-2013 Time: 5pm to 9pm.

is 2 days. The daily demand for clean towels at the hotel is normally distributed with a mean of

is a constant at 10000 pages to be copied. The mean lead time for the contractor is 4 days with

a standard deviation of 1.25 days for delivering copies. Find the re-order point

ordering cost is $60 per order. The holding cost is $4 per unit per year. The lead time

for this item is 3 days. Assume 250 working days per year.

for the law firm. The desired service level is 95%. The corresponding Z =1.64.

NOTE: Show all steps. Solve problems using EXCEL.

Date: 7-19-2013 Time: 5pm to 9pm.

is 2 days. The daily demand for clean towels at the hotel is normally distributed with a mean of

is a constant at 10000 pages to be copied. The mean lead time for the contractor is 4 days with

a standard deviation of 1.25 days for delivering copies. Find the re-order point

ordering cost is $60 per order. The holding cost is $4 per unit per year. The lead time

for this item is 3 days. Assume 250 working days per year. Find:

b) What is the optimal number of orders per year.

c) What is the annual cost of ordering and holding inventory.

d) What is the re-order point.

2. ABC Co. manufactures a subcomponent at the rate of 400 per day when required.

Its annual demand for this item is 50000 units. Assume 250 working days per year.

Holding cost is $10 per unit per year. Set-up cost is $150 per set-up. Find:

800 and a standard deviation of 150. Management has set the service level 95%.

For this service level Z = 1.64

a) The Reorder point.4. A printing company has a contract with a legal firm to copy their court documents. Daily demand

MGSC 303 Exam 2 SUM II 2013

1. ABC Co. purchases an item. The annual demand for this item is 75000 units. The

3. Hotel ABC has contracted out its towel laundering work. The lead time for the contractor

Find:

b) Safety stock.

d) What percentage of time during the year will this item be produced.

a) Economic production quantity.

b)How many production runs will be made per year.

c)What will be the maximum inventory level.

e) What is the annual cost for ordering and holding inventory.

a) Economic order quantity EOQ.

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