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    Savan Bhatt
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    The document provides examples and questions related to inventory management. It gives details of two examples involving calculating order quantities to maintain acceptable stockout risk levels given demand variability. It then lists example problems 3, 8, 11 and 13 from another source to solve. It concludes by asking why ABC classification of inventory items into groups is desirable.

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    Assign 2(POM)

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    The document provides examples and questions related to inventory management. It gives details of two examples involving calculating order quantities to maintain acceptable stockout risk levels given demand variability. It then lists example problems 3, 8, 11 and 13 from another source to solve. It concludes by asking why ABC classification of inventory items into groups is desirable.

    Copyright:

    Attribution Non-Commercial (BY-NC)
    Download as DOCX, PDF, TXT or read online from Scribd
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    Download as docx, pdf, or txt
    210 views1 page

    Assign 2 (POM)

    Uploaded by

    Savan Bhatt
    The document provides examples and questions related to inventory management. It gives details of two examples involving calculating order quantities to maintain acceptable stockout risk levels given demand variability. It then lists example problems 3, 8, 11 and 13 from another source to solve. It concludes by asking why ABC classification of inventory items into groups is desirable.

    Copyright:

    Attribution Non-Commercial (BY-NC)
    Download as DOCX, PDF, TXT or read online from Scribd
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    Assignment -2

    Sub: POM Submission Date: 13/03/2013 SEM II

    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: Charlies 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. Charlies Pizza uses an average of 150 pounds of pepperoni each week, with a standard deviation of 30 pounds. Charlies 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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