Exhausting Enterprises is an auto parts supplier that delivers ordered parts to neighboring mechanics. The mechanics do not have room or the capital to store all the parts they may need so they place orders multiple times during the day. Exhausting Enterprises has a small fleet of delivery vans to make deliveries. Focusing on alternators, lead time for Exhausting Enterprises to receive more alternators from their supplier is 2 days. Alternators experience an average daily demand of 0.8 and follow a Poisson distribution. At the start of the day, Exhausting Enterprises has a backorder of 1 alternator and none in-stock. There are 4 alternators on the way. How many alternators will Exhausting Enterprises need to order if their order-up-to level is set to 7? What is the average on-hand inventory and on-order inventory for alternators? What is the probability of alternators being in-stock?

Exhausting Enterprises is an auto parts supplier that delivers ordered parts to neighboring mechanics. The mechanics do not have room or the capital to store all the parts they may need so they place orders multiple times during the day. Exhausting Enterprises has a small fleet of delivery vans to make deliveries. Focusing on alternators, lead time for Exhausting Enterprises to receive more alternators from their supplier is 2 days. Alternators experience an average daily demand of 0.8 and follow a Poisson distribution. At the start of the day, Exhausting Enterprises has a backorder of 1 alternator and none in-stock. There are 4 alternators on the way. How many alternators will Exhausting Enterprises need to order if their order-up-to level is set to 7? What is the average on-hand inventory and on-order inventory for alternators? What is the probability of alternators being in-stock?

Practical Management Science

6th Edition

ISBN:9781337406659

Author:WINSTON, Wayne L.

Publisher:WINSTON, Wayne L.

Chapter11: Simulation Models

Section: Chapter Questions

Problem 47P

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