Consider the problem of satisfying the demand for number 2, Operation Management

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Consider the problem of satisfying the demand for number 2

Consider the problem of satisfying the demand for number 2 pencils faced by the campus store mentioned in problem 29.

a) Re-solve the problem, substituting a Type 1 service level criterion of 95 percent for the stock out cost.

b) Re- solve the problem, substituting a Type 2 service level criterion 95 percent for the stock out cost, assume that is given by that EOQ.

C) Find the simultaneous optimal values of Q and R assuming a Type 2 service level of 95 percent.

Above question is from Production and Operations Analysis - BY Steven Nahmias and Tava Lennon Olsen 7th Edition.

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