Maurice Tutor

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    Argosy University/ Phoniex University/
    Nov-2005 - Oct-2011

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    Phoniex University
    Oct-2001 - Nov-2016

Category > Management Posted 28 Oct 2017 My Price 4.00

spare engine part

The daily demand for a spare engine part is a random variable with a distribution, based on past experience, given by

 

The part is expected to be obsolete after 400 days. Assume that demands from one day to the next are independent. The parts cost $1,500 each when acquired in advance of the 400-day period and $5,000 each when purchased on an emergency basis during the 400-day period. Holding costs for unused parts are based on a daily interest rate of 0.08 percent. Unused parts can be scrapped for 10 percent of their purchase price. How many parts should be acquired in advance of the 400-day period?

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Maurice Tutor
(5)
Status NEW Posted 28 Oct 2017 10:10 PM My Price 4.00

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