18.7-8. Suppose that the demand D for a spare airplane part has an exponential distribution with mean 50, that is, e-f/50 for ? 0 (6) = 50 0 otherwise. This airplane will be obsolete in 1 year, so al

  

18.7-8. Suppose that the demand D for a spare airplane part has an exponential distribution with mean 50, that is, e-f/50 for ? 0 (6) = 50 0 otherwise. This airplane will be obsolete in 1 year, so all production of the spare part is to take place at present. The production costs now are $1,000 per item- that is, c-1.000-but they become $10,000 per item if they must be supplied at later dates-that is, p – 10,000 The holding costs, charged on the excess after the end of the pe- riod, are $300 per itenm T (a) Determine the optimal number of spare parts to produce. (b) Suppose that the manufacturer has 23 parts already in inven- tory (from a similar, but now obsolete airplane). Determine the optimal inventory policy (c) Suppose that p cannot be determined now, but the manufac- turer wishes to order a quantity so that the probability of a shortage equals 0.1. How many units should be ordered?

Don't use plagiarized sources. Get Your Custom Essay on
18.7-8. Suppose that the demand D for a spare airplane part has an exponential distribution with mean 50, that is, e-f/50 for ? 0 (6) = 50 0 otherwise. This airplane will be obsolete in 1 year, so al
Just from $10/Page
Order Essay
Place your order
(550 words)

Approximate price: $22

Calculate the price of your order

550 words
We'll send you the first draft for approval by September 11, 2018 at 10:52 AM
Total price:
$26
The price is based on these factors:
Academic level
Number of pages
Urgency
Basic features
  • Free title page and bibliography
  • Unlimited revisions
  • Plagiarism-free guarantee
  • Money-back guarantee
  • 24/7 support
On-demand options
  • Writer’s samples
  • Part-by-part delivery
  • Overnight delivery
  • Copies of used sources
  • Expert Proofreading
Paper format
  • 275 words per page
  • 12 pt Arial/Times New Roman
  • Double line spacing
  • Any citation style (APA, MLA, Chicago/Turabian, Harvard)

Our guarantees

Delivering a high-quality product at a reasonable price is not enough anymore.
That’s why we have developed 5 beneficial guarantees that will make your experience with our service enjoyable, easy, and safe.

Money-back guarantee

You have to be 100% sure of the quality of your product to give a money-back guarantee. This describes us perfectly. Make sure that this guarantee is totally transparent.

Read more

Zero-plagiarism guarantee

Each paper is composed from scratch, according to your instructions. It is then checked by our plagiarism-detection software. There is no gap where plagiarism could squeeze in.

Read more

Free-revision policy

Thanks to our free revisions, there is no way for you to be unsatisfied. We will work on your paper until you are completely happy with the result.

Read more

Privacy policy

Your email is safe, as we store it according to international data protection rules. Your bank details are secure, as we use only reliable payment systems.

Read more

Fair-cooperation guarantee

By sending us your money, you buy the service we provide. Check out our terms and conditions if you prefer business talks to be laid out in official language.

Read more

Order your essay today and save 30% with the discount code ESSAYSHELP