Flag Faber Manufacturing inc of st paul purchases 9,649 top of the line semiconductor; the maximum backordering quantity in units 502; lead time = 1.5 month ( the firm operates 12 months per year). If the firms customer do not object to backordering and each unit backordered costs $4/year, then: what is the longest delay time in months?

Practical Management Science
6th Edition
ISBN:9781337406659
Author:WINSTON, Wayne L.
Publisher:WINSTON, Wayne L.
Chapter11: Simulation Models
Section: Chapter Questions
Problem 47P
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Flag Faber Manufacturing inc of st paul purchases 9,649 top of the line semiconductor; the maximum backordering quantity in units 502; lead time = 1.5 month ( the firm operates 12 months per year). If the firms customer do not object to backordering and each unit backordered costs $4/year, then: what is the longest delay time in months?
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