# Posts by trai

Total # Posts: 6

**quantitative methods for business**

A product with an annual demand of 1000 units has Co = $25.50 and Ch = $8. The demand exhibits some variability such that the lead-time demand follows a normal probability distribution with μ = 25 and σ = 5. 1. What is the recommended order quantity? 2. What are the ...

**quantitative methods for business**

A perishable diary product is ordered daily at a particular supermarket. The product, which cost $1.19 per unit, sells for $1.65 per unit. If units are unsold at the end of the day, the supplier takes them back at a rebate of $1 per unit. Assume that daily demand is ...

**quantitative methods for business**

A manager of an inventory system believes that inventory models are important decision-making aids. Even though often using an EOQ policy, the manager never considered a backorder model because of the assumption that back orderes were “bad” and should be a avoided. ...

**quantitative methods for business**

El Computer produces its multimedia notebook computer on a production line that has an annual capacity of 16,000 units. The cost to set up the production line is $2345, and the annual holding cost is $20 per unit. Current practice calls for production runs of 50 notebooks ...

**quantitative methods for business**

Cress Electronic Products manufactures components used in the automotive industry. Cress purchases parts for use in its manufacturing operation of different suppliers. One particular supplier provides a part where the assumptions of the EOQ model are realistic. The annual ...

**quantitative methods for business**

Metropolitan Bus Company purchases diesel fuel from American Petroleum Supply. American Petroleum Supply charges $250.00 to cover delivery expenses. The lead time for a new shipment from American Petroleum is 10 days and the cost of holding a gallon of fuel in storage is $0.04...