Indicate whether the following statements are true or false, and for each statement, provide a brief explanation.

management

Description

Problem 1 – TRUE/FALSE (25 points) Indicate whether the following statements are true or false, and for each statement, provide a brief explanation. 


(a) (5 points) The average flow rate is 10,000 units per day and the average flow time is 4 days. According to Little's Law the maximum inventory will never exceed 40,000 units. 


(b) (5 points) Annual demand for a product is deterministic and constant. The demand rate increases by 20% and setup costs fall by 20%. The EOQ will increase by 20%.


(c) (5 points) A store is using the newsvendor model to order toilet paper assuming that the demand is normally distributed with mean 200, and their optimal order quantity is 150 units. After a few months, the store owner realizes that the demand has a smaller standard deviation than estimated. The owner should order more toilet paper. 


Related Questions in management category


Disclaimer
The ready solutions purchased from Library are already used solutions. Please do not submit them directly as it may lead to plagiarism. Once paid, the solution file download link will be sent to your provided email. Please either use them for learning purpose or re-write them in your own language. In case if you haven't get the email, do let us know via chat support.