In a blouse factory, there is an inventory holding cost of S 1.50 per piece per day, a late sale cost of S 3.00 per *garment per day, and an ordering cost of S 500.00 There is a delivery time of 14...


In a blouse factory, there is an inventory holding cost of S<br>1.50 per piece per day, a late sale cost of S 3.00 per<br>*garment per day, and an ordering cost of S 500.00<br>There is a delivery time of 14 days per order and the exact<br>demand during this time is not known, but it is known to<br>be a random variable based on a normal distribution with<br>a mean of 600 garments arid a standard deviation of 60.<br>Determine the order size, reorder point and safety stock sO<br>that there is no shortage during 95% of the delivery time.<br>

Extracted text: In a blouse factory, there is an inventory holding cost of S 1.50 per piece per day, a late sale cost of S 3.00 per *garment per day, and an ordering cost of S 500.00 There is a delivery time of 14 days per order and the exact demand during this time is not known, but it is known to be a random variable based on a normal distribution with a mean of 600 garments arid a standard deviation of 60. Determine the order size, reorder point and safety stock sO that there is no shortage during 95% of the delivery time.

Jun 07, 2022
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