Boehm Compressors uses a lean production assembly line to make its compressors. In one assembly area, the demand is 100 parts per eight-hour day. It uses a container that holds eight parts. It typically takes about six hours to round-trip a container from one work center to the next and back again. It also desires to hold 15 percent safety stock of this part in the system.
a) How many containers should Boehm Compressors be using?
b) Calculate the maximum system inventory for this part.
c) If it reduced the number of containers by one, how would this impact the required round-trip time, all else being constant?”
Given the following information, determine the optimal overbooking policy for Lindi’s Beauty Salon. The salon’s capacity is 8 patrons. The historic number of no-shows for a typical day along with the probability of occurrence is shown in the table. The average profitability per patron is $100 and the cost of lost goodwill per patron due to overbooking is approximately $50.
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