SEN 370 Sample Test 2 Questions with Solutions
- From Economics, General Economics
- Stunnerwinz
- Rating : 0
- Grade : No Rating
- Questions : 1
- Solutions : 64
- Blog : 0
- Earned : $0.00
The famous Ernie from Sesame Street continually faces replenishment decisions concerning his cookie supply. The Cookie Monster devours the cookies at an average rate of 200 per day. The cookies cost $0.03 each. Ernie is getting fed up with having to go to the store once a week. His friend Bert has offered to do a study to help Ernie with his problem. a. If Ernie is implicitly following an EOQ policy already with his weekly replenishment, what can Bert say about the implicit values of the two missing parameters? Solution: Weekly demand equals 1,400 units, which implies an annual demand (ο¬) of 72,800. Weekly replenishment implies a lot size of Q = 1,400 units. If this is equal to the EOQ, then we must have π = √ 2πΎπ ππ = √ 2πΎ(72800) π(0.03) = 2203.028√ πΎ π . Because Q = 1,400, this implies √ πΎ π = 1400 2203.08 = 0.63549, which implies πΎ π = 0.40385. Note that if we use a daily demand of ο¬ = 200, then we get K/i = 147. Note that if we use a weekly demand of ο¬ = 1400, then we get K/i = 21
[Solved] SEN 370 Sample Test 2 Questions with Solutions
- This solution is not purchased yet.
- Submitted On 03 Nov, 2022 12:30:23
- Stunnerwinz
- Rating : 0
- Grade : No Rating
- Questions : 1
- Solutions : 64
- Blog : 0
- Earned : $0.00