Assignment -2 Sub: POM SEM –II Submission Date: 13/03/2013 Example 1: Daily Demand for a product is 120 units, with a standard deviation 0f 30 units. At the review, 130 units are in stock. If only a 1 percent risk of stocking out is acceptable, how many units should be ordered? Example 2: Charlie’s Pizza orders all of its pepperoni, olives, anchovies, and mozzarella cheese to be shipped directly from Italy. An American distributor stops by every four weeks to take orders. Because the orders are shipped directly from Italy, they take three weeks to arrive. Charlie’s Pizza uses an average of 150 pounds of pepperoni each week, with a standard deviation of 30 pounds. Charlie’s prides itself on offering only the best quality ingredients and a high level of service, so it wants to ensure a 98% probability of not stocking out on pepperoni. Ex: 3 to 8 Solve Example No: 2, 3, 4, 8, 11, and 13 from the photocopy given to you. Que 1: Why is it desirable to classify Inventory items into groups, as the ABC classification does?

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Assignment -2

Sub: POM SEM –IISubmission Date: 13/03/2013

Example 1: Daily Demand for a product is 120 units, with a standard deviation 0f 30 units. At the review, 130 units are in stock. If only a 1 percent risk of stocking out is acceptable, how many units should be ordered?

Example 2: Charlie’s Pizza orders all of its pepperoni, olives, anchovies, and mozzarella cheese to be shipped directly from Italy. An American distributor stops by every four weeks to take orders. Because the orders are shipped directly from Italy, they take three weeks to arrive. Charlie’s Pizza uses an average of 150 pounds of pepperoni each week, with a standard deviation of 30 pounds. Charlie’s prides itself on offering only the best quality ingredients and a high level of service, so it wants to ensure a 98% probability of not stocking out on pepperoni.

Ex: 3 to 8Solve Example No: 2, 3, 4, 8, 11, and 13 from the photocopy given to you.

Que 1: Why is it desirable to classify Inventory items into groups, as the ABC classification does?