The Injection Molding Department of Alver Inc

question 72

Short Answer

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 orders will be placed each year?

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Definitions:

Bushels of Grain

A unit of volume measurement used in the United States for agricultural commodities, like wheat and corn, with specific equivalents in pounds varying by commodity.

Acres of Pasture

A measure of land area, specifically used for grazing livestock or as grassland.

Budget

A financial plan detailing projected revenue and expenditures over a specific period.

Bushels of Grain

A measurement unit for volume typically used in the U.S. to quantify agricultural produce like grain.