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Since Service Level= (1-0.4) =0.6, only inventory levels with cumulative probabilities >0.
6 will be considered
Inventory Level Oats Peas Beans Corn
Final Answer:
Oats=20
Peas=20
Beans=25
Corn=30
TOTAL=95
Part II. B. 2.
Part II. B. 2.
Part II. B. 2.
Part II. C.
Q* 43 33 30 45 151
Part II. D.
Given: SL=0.96 %dec=139-151/151=7.947
Total Mean (miu sub t)=36+28+23+40 = 127 151 is the answer from c.
Std. Dev. (sigma t)= square root of (10+8+11+15)= 6.6332 P=(5C2)(0.04)^2 (0.96)^3
Z at 0.96=1.75 P=0.0142
Step 2: Divide Critical Ratio by 6 days: (this is what you will consider your legit C.R. in
computations, but the answer for Critical Ratio is still the C.R. in Step 1. FACPLAD is complicated
like that.)
Part II F
Step 3: Get cumulative probability (sorry don’t know what else to call it)
Random QUAMET1 Note:
Why do you add starting
from the biggest inventory
level? it’s because for
add upwards 1.00 1.00 example if you have 10 oats
there is a 100% chance you
1.00 0.70 will have 5 oats (you can’t
0.70 have 10 oats without having
0.70 5 because 10 > 5)
0.50 0.45
0.30 0.35
0 0.20
Part II F
Step 4: The optimal quantity Q* is the first Inv. Level whose probability exceeds
the legit C.R. (see Step 2).
Start of 3 4 2 Example 1
day 1 At the end of day 1:
For Oats, 3-1 = 2
For Peas, 4-1=3
+ + = For Beans, the inventory was 2 or less,
+ + = thus, 2+2(replenishment)-1=3
+ + =
+ + = Example 2
+ + = At the end of day 4:
+ + = For Oats, 2-2+3(replenishment) = 3
+ + = For Peas, 2-2+2(replenishment)= 2
For Beans, 2-2+2(replenishment)= 2
Aggregate is the total number of storage units you will
need at a given time (take note for Part II G.3.
Part II G.2
For Dedicated Storage, get the maximum possible units of each product you
can have at any given time.
Why? Because dedicated
storage means that, for
example, you can only use
the storage for Peas for
Peas alone. You cannot use
the excess storage for Peas
Based on Dedicated Storage, you will need
for Oats.
3+3+3 = 9 storage units in total
Part II G.3
Dedicated storage means that storage for Oats must be used for Oats alone.
Randomized storage means that one storage unit can be used by any product.
For Randomized storage, get the maximum aggregate.
8 is the
maximum
aggregate
Part II G.3
Percent decrease:
Part III- Given figure
Part III A.
180+75=255
5 sides 150k-5625
2
75≤ k ≤180
If k=100
6 sides 27,000- (255-k) 180≤ k ≤ 255