Scribd
Upload
67 views2 pages

OPM 352 Homework8inventoryaggregation

The document discusses the inventory ordering policy for a company with four regional warehouses and the optimal centralized policy. It provides the equations and calculations for determining the economic order quantity, reorder point, safety stock, and other metrics under both scenarios.

Uploaded by

herrajohn
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd
67 views2 pages

OPM 352 Homework8inventoryaggregation

The document discusses the inventory ordering policy for a company with four regional warehouses and the optimal centralized policy. It provides the equations and calculations for determining the economic order quantity, reorder point, safety stock, and other metrics under both scenarios.

Uploaded by

herrajohn
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd
You are on page 1/ 2

14FA OPM 352 HW #8 10 pts

A mail-order firm has four regional warehouses. Demand at each warehouse is normally
distributed with a mean of 10,000 per week and a standard deviation of 2,000. Annual holding
cost is 25%, and each unit of product costs the company $10. Each order incurs and ordering
cost of $1,000 and lead time is 1 week. The company wants the probability of stocking out in a
flow to be no more than 5%. Assume 50 working weeks in a year.

a) Assuming that each warehouse operates independently, what should be the ordering
policy at each warehouse?
a. How much should be ordered?
b. What should be the ROP?
i. LTD and Safety Stock
c. What is the annual ordering costs?

m
er as
d. What is the annual holding costs (include the safety stock)?

co
e. On average, how long does a unit of product spend in the warehouse?

eH w
o.
rs e
b) Assume that all of the warehouses are centralized into a single facility, what should the
ou urc
ordering policy be for the centralized warehouse?
a. How much should be ordered?
o

b. What should be the ROP?


aC s

i. LTD and Safety Stock


vi y re

c. What is the annual ordering costs?


d. What is the annual holding costs (include the safety stock)?
e. On average, how long does a unit of product spend in the warehouse?
ed d
ar stu
sh is
Th

https://www.coursehero.com/file/10279698/OPM-352-homework-8-inventory-aggregation/
14FA OPM 352 HW #8 10 pts

Homework 8

R(weekly) 10000
R(annual) 500000
STDEV 2000
h+r 0.25
C 10
S 1000
LT 1
SL 0.95
H 2.5
A.

m
a. EOQ 20000

er as
b. ROP 13290

co
LTD 10000

eH w
STD LTD 2000

o.
z 1.64485363
rs e
Safety stock 3290
ou urc
c. ordering cost $ 25,000.00
d. Holding Cost $ 33,224.27
e. avg time in inventory 1.32897073 weeks
o

B.
aC s
vi y re

a. EOQ 40000
b. ROP 46579
LTD 40000
STD LTD 2000
ed d

z 1.64485363
ar stu

Safety stock 6579.41451 6580


c. ordering cost $ 50,000.00
d. Holding cost $ 66,448.54
sh is

e. avg time in inventory 0.66448536 weeks


Th

https://www.coursehero.com/file/10279698/OPM-352-homework-8-inventory-aggregation/

Powered by TCPDF (www.tcpdf.org)

You might also like

pFad - Phonifier reborn

Pfad - The Proxy pFad of © 2024 Garber Painting. All rights reserved.

Note: This service is not intended for secure transactions such as banking, social media, email, or purchasing. Use at your own risk. We assume no liability whatsoever for broken pages.


Alternative Proxies:

Alternative Proxy

pFad Proxy

pFad v3 Proxy

pFad v4 Proxy