SolutionstoReviewQuestionsSession8

ChaseJacobsChapter17Problem10(incoursepackage)
D=15600;S=$31.20;H=$0.1
EOQ=Q*=

2* D * S
3120[Actuallynotaskedinthisquestion]
H

z0.98=2.05
ROP=300*4+2.05*90*2=1569
Thenewsafetystock=(2.05*90*2)/2correspondstoazvalueof2.05/2=1.025.
Thenewservicelevel=Prob(z1.025)=84.7%.

ChaseJacobsChapter17Problem16(incoursepackage)
D=5000;S=$10;H=0.2*$3=$0.6
EOQ=Q*=

2* D * S
408bottles
H

z95%=1.645
ROP=100*3+1.645*30*3=386(Roundup!)

Motorola
D=208,000boardsperyearS=$54perorder

H=0.20.78=$0.156perboardyear

2* D * S
=12,000circuitboards
H
208000
=4000boardsperweek.
Weeklydemandrate=
52

EOQ=Q*=

Leadtimebeingbetween1and2weeksresultsinthevariabledemandduringleadtime(mean
demandduringleadtime=6000,std.dev.duringleadtime=500).

3%chanceofstockoutimpliesthattheprescribedservicelevel=0.97.
ROP=6000+1.88*500=6941circuitboards(roundup!)
Q=12,000,ROP=6941

Timbuk2Inc.
Howmuchtoorder:EOQ=Sqrt(2*1000*50*25/0.1)=5000
ROP=1000*4+2.576*300*Sqrt(4)=5546(roundup!)
NewSL:z=(ROP1000*4)/(300*2)=0;hencetheSL=50%