(Canadian Tire inventory control, Section 1.2) Daily demand for paint brushes at a particular…

(Canadian Tire inventory control, Section 1.2) Daily demand for paint brushes at a particular store follows the demand distribution:

(Canadian Tire inventory control, Section 1.2) Daily demand for paint brushes at a particular store...

The stock level is reviewed in the evening every four days and when warranted an order is placed at the central warehouse to augment stock. Orders arrive two days later (a two day lead time) and are available to meet demand on the morning of the third day following the review. For example, an order placed Sunday evening can be used to meet demand on Wednesday. Demand not satisfed from stock on hand is never filled. Management imposes a penalty to account for this.

a. Find a reodering policy that minimizes expected total ordering, holding and shortage costs under the assumption that the fixed cost for placing an order is $0.20, the daily per unit holding cost is $0.01 and the per unit penalty cost for unfilled orders is $0.50. Assume a planning horizon of 84 days and assign a value of $0.70 for each unit on hand at the end of this period.

b. Investigate the sensitivity of the optimal policy to the penalty cost.

c. Investigate the sensitivity of the expected total cost to the review period. In particular what is the effect of reviewing the inventory level every 7 days instead. (Hint: Write a system equation which describes the system state every review period as a function of the system state at the previous review period and the daily demand at each day between reviews. Note further that the two day demand can be found by computing the convolution of the above demand distribution with itself. Of course, solving this problem involves writing a computer program.)

Place your order
(550 words)

Approximate price: $22

Calculate the price of your order

550 words
We'll send you the first draft for approval by September 11, 2018 at 10:52 AM
Total price:
$26
The price is based on these factors:
Academic level
Number of pages
Urgency
Basic features
  • Free title page and bibliography
  • Unlimited revisions
  • Plagiarism-free guarantee
  • Money-back guarantee
  • 24/7 support
On-demand options
  • Writer’s samples
  • Part-by-part delivery
  • Overnight delivery
  • Copies of used sources
  • Expert Proofreading
Paper format
  • 275 words per page
  • 12 pt Arial/Times New Roman
  • Double line spacing
  • Any citation style (APA, MLA, Chicago/Turabian, Harvard)

Our guarantees

Delivering a high-quality product at a reasonable price is not enough anymore.
That’s why we have developed 5 beneficial guarantees that will make your experience with our service enjoyable, easy, and safe.

Money-back guarantee

You have to be 100% sure of the quality of your product to give a money-back guarantee. This describes us perfectly. Make sure that this guarantee is totally transparent.

Read more

Zero-plagiarism guarantee

Each paper is composed from scratch, according to your instructions. It is then checked by our plagiarism-detection software. There is no gap where plagiarism could squeeze in.

Read more

Free-revision policy

Thanks to our free revisions, there is no way for you to be unsatisfied. We will work on your paper until you are completely happy with the result.

Read more

Privacy policy

Your email is safe, as we store it according to international data protection rules. Your bank details are secure, as we use only reliable payment systems.

Read more

Fair-cooperation guarantee

By sending us your money, you buy the service we provide. Check out our terms and conditions if you prefer business talks to be laid out in official language.

Read more
error: Content is protected !!