Question

F116 Problem Set 2 Fall 2024 (d) (3 points) What is the annual inventory holding cost for \( \Psi \) ? \( \Omega \) 's weekly demand is \( 300 \mathrm{~m}^{3} \) with a standard deviation of \( 40 \mathrm{~m}^{3} \). S's cost for placing an order is \( \oiiint 120 \). (e) (2 points) What is \( \Omega \) 's optimal order quantity? (f) (2 points) How often per year ( \( =52 \) weeks) does \( \Omega \) order oxygen from MHQ, and what is the average time between two orders (in weeks)? (g) (2 points) What is the reorder point (ROP) for \( \Omega \) ? MHQ's own weekly demand is \( 1000 \mathrm{~m}^{3} \) with a standard deviation of \( 49 \mathrm{~m}^{3} \). (h) (2 points) Only considering its own demand, (i.e., MHQ is not holding safety stock for \( \Psi \) and \( \Omega \) ) how much safety stock does MHQ hold? Page 4 of 11

          F116
Problem Set 2
Fall 2024
(d) (3 points) What is the annual inventory holding cost for \( \Psi \) ?
\( \Omega \) 's weekly demand is \( 300 \mathrm{~m}^{3} \) with a standard deviation of \( 40 \mathrm{~m}^{3} \). S's cost for placing an order is \( \oiiint 120 \).
(e) (2 points) What is \( \Omega \) 's optimal order quantity?
(f) (2 points) How often per year ( \( =52 \) weeks) does \( \Omega \) order oxygen from MHQ, and what is the average time between two orders (in weeks)?
(g) (2 points) What is the reorder point (ROP) for \( \Omega \) ?

MHQ's own weekly demand is \( 1000 \mathrm{~m}^{3} \) with a standard deviation of \( 49 \mathrm{~m}^{3} \).
(h) (2 points) Only considering its own demand, (i.e., MHQ is not holding safety stock for \( \Psi \) and \( \Omega \) ) how much safety stock does MHQ hold?
Page 4 of 11

F116
Problem Set 2
Fall 2024
(d) (3 points) What is the annual inventory holding cost for Ψ ?
Ω 's weekly demand is 300 m^3 with a standard deviation of 40 m^3. S's cost for placing an order is 120.
(e) (2 points) What is Ω 's optimal order quantity?
(f) (2 points) How often per year ( =52 weeks) does Ω order oxygen from MHQ, and what is the average time between two orders (in weeks)?
(g) (2 points) What is the reorder point (ROP) for Ω ?

MHQ's own weekly demand is 1000 m^3 with a standard deviation of 49 m^3.
(h) (2 points) Only considering its own demand, (i.e., MHQ is not holding safety stock for Ψ and Ω ) how much safety stock does MHQ hold?
Page 4 of 11

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