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The injection molding department of Alver Inc. uses an average of 40 pounds of a special powder per ...

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The injection molding department of Alver Inc. uses an average of 40 pounds of a special powder per ...

The injection molding department of Alver Inc. uses an average of 40 pounds of a special powder per day. The plant operates 250 days per year. The daily usage of the powder is normally distributed with a standard deviation of 5 pounds per day. The lead time to obtain the powder from a supplier is 9 days. The annual holding cost is $2 per unit and the cost of ordering the powder is $50.

How many units should Alver Inc. order in order to minimize annual ordering and carrying cost?

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Introduction to Management Science

Edition: 13^th

Author: Taylor

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