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Category > Computer Science Posted 12 Sep 2017 My Price 5.00

computerized inventory system

Continuous Review ( Q, r ) System

Problem Statement

A resort hotel is planning to install a computerized inventory system to manage the complementary guest toilet items such as soap and shampoo. The daily usage rate for bars of soap appears to be distributed normally, with mean μ = 16 and standard deviation σ = 3. Once an order is placed, it takes a full week before delivery is made. The effort to place an order and receive the shipment is approximately one hour’s time for a staff person who is paid $10 per hour. The opportunity cost of capital is 20 percent per year. A bar of soap is valued at approximately $0.25. The hotel is concerned about stock outs of such a basic item and, thus, desires a 94 percent service level. Recommend an order quantity (Q) and reorder point (r) for a continuous review system. S

 

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Maurice Tutor
(5)
Status NEW Posted 12 Sep 2017 07:09 PM My Price 5.00

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