office supply company has a spare parts warehouse in alaska to support its offic
ID: 439869 • Letter: O
Question
office supply company has a spare parts warehouse in alaska to support its office equipment mainanance needs . Once every six months a major replenishment shipment is received . If the inventory of any given part runs out before the next replenishment shipment is received . Ifthe inventory of any given part runs out before the next replenishment, then emergency air shpments are used to resupply the part as needed . Orders are placed on January 15 and June 15 and orders ae received on february 15 and july 15 respectively OSC must determine replenishment quantities for its spare parts. As an example historical data show that the total demand for part 1AA-66 over a six months interval is poisson with demand 6.5 The cost of inventorying unneeded prt for six months is $5 (which includes both physical and financial holdng costs and is charged based on inventory at the end of the six month period) The variable production cost for 1AA- 66 is $32 per part snd the cost of an emergency shipment $50 per part It is january 15 and there are currently three 1AA-66 parts in inventory . How mny parts should arrive in february 15?Explanation / Answer
3.5 parts should arrive in January, 15.
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