A small copy center uses five 500-sheet boxes of copy paper a week. Experience suggests thatusage can be well approximated by a normal distribution with a mean of five boxes per week and astandard deviation of one-half box per week. Two weeks are required to fill an order for letterheadstationery. Ordering cost is $2, and annual holding cost is 20 cents per box.a. Determine the economic order quantity, assuming a 52-week year.b. If the copy center reorders when the supply on hand is 12 boxes, compute the risk of a stockout.c. If a fixed interval of seven weeks instead of an ROP is used for reordering, what risk does thecopy center incur that it will run out of stationery before this order arrives if it orders 36 boxeswhen the amount on hand is 12 boxes?
Critical Path Method
The critical path is the longest succession of tasks that has to be successfully completed to conclude a project entirely. The tasks involved in the sequence are called critical activities, as any task getting delayed will result in the whole project getting delayed. To determine the time duration of a project, the critical path has to be identified. The critical path method or CPM is used by project managers to evaluate the least amount of time required to finish each task with the least amount of delay.
Cost Analysis
The entire idea of cost of production or definition of production cost is applied corresponding or we can say that it is related to investment or money cost. Money cost or investment refers to any money expenditure which the firm or supplier or producer undertakes in purchasing or hiring factor of production or factor services.
Inventory Management
Inventory management is the process or system of handling all the goods that an organization owns. In simpler terms, inventory management deals with how a company orders, stores, and uses its goods.
Project Management
Project Management is all about management and optimum utilization of the resources in the best possible manner to develop the software as per the requirement of the client. Here the Project refers to the development of software to meet the end objective of the client by providing the required product or service within a specified Period of time and ensuring high quality. This can be done by managing all the available resources. In short, it can be defined as an application of knowledge, skills, tools, and techniques to meet the objective of the Project. It is the duty of a Project Manager to achieve the objective of the Project as per the specifications given by the client.
A small copy center uses five 500-sheet boxes of copy paper a week. Experience suggests that
usage can be well approximated by a
standard deviation of one-half box per week. Two weeks are required to fill an order for letterhead
stationery. Ordering cost is $2, and annual holding cost is 20 cents per box.
a. Determine the economic order quantity, assuming a 52-week year.
b. If the copy center reorders when the supply on hand is 12 boxes, compute the risk of a stockout.
c. If a fixed interval of seven weeks instead of an ROP is used for reordering, what risk does the
copy center incur that it will run out of stationery before this order arrives if it orders 36 boxes
when the amount on hand is 12 boxes?
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