Company A: Demand (D) = 70,000 units per year Q* = = (2*70000)*34 = 238000 = 487.85 Ordering Costs (Co) = $34 per order 20 Per Unit Cost of inventory =400 Holding cost rate = 5% Holding cost(Ch) = $400(.05) = $20.00 Q* = 488
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Data Expected Value Category name Value Frequency Probability Cumulative Probability Random No interval Category 1 $ 22.00 0.02 0.02 0.02 2 Category 2 $ 23.00 0.35 0.35 0.37 37 Category 3 $ 24.00 0.16 0.16 0.53 53 Category 4 $ 25.00 0.44 0.44 0.97 97 Category 5 $ 28.00 0.03 0.03 1 100 Category 6 0 1 100 Total 1 The probability for each cost is shown. The total of probability
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If a business wants to determine the optimale replenishment lot size, the use of the Economic Production Lot Model can be used. This model is a variation of the EOQ Model. This model procides the most optimied approach of ordering as it considers, demand, available production, ordering cost, set up costs, and holding costs in order to develop the inventory to be ordered to maintain a minimum annual cost (Rendoer 2012). Company B Details Holding Rate:
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SUBDOMAIN 309.3 - QUANTITATIVE ANALYSIS Competency 309.3.3: Expected Value Decision Analysis - The graduate uses expected value concepts as decision-making tools. Objective 309.3.3-04: Determine for a given decision tree which decision branch has the most favorable total expected value. ________________________________________ Introduction: A company is considering two alternatives for improving profits: develop new products or consolidate existing products. If the company decides to develop
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Complete 12 trials using the random numbers that are provided on the “Simulation Template” for each probability distribution. Use the random numbers in the exact sequence that they appear on the template for each cost. A. Complete the attached “QAT1 Task 1 Spreadsheet” (responses should include two decimal
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QAT1 Task 5 #258453 In the given scenario, a company is considering alternatives for improving profits by either developing new products, or consolidating existing products. There are 4 separate branches that split from the 2 main branches. Develop new product: 1). Develop thoroughly: a) Good demand .47 $500,000 b) Moderate demand .38 $25,000 c) Poor demand .15 $1000 So, with the above given variables, to calculate
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Jane Doe 02/10/2014 QAT1 309.3.2-01-06 A. See table 1.1 attachment B. 1. Expected time to complete: * a= the optimistic completion time estimate * b= the pessimistic completion time estimate * m= the most likely completion time estimate The activities mean completion time is: t= (a+4m+b)/6 * Task A. (2+12+4)/6=3 * Task B. (5+24+13)/6=7 * Task C. (3+16+8)/6=4.5 * Task D. (10+44+15)/6=11.5 * Task E. (4+20+6)/6=5 * Task F. (8+40+12)/6=10 * Task
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