Purchase Solution

EOQ Model for the Bridgeport City

Not what you're looking for?

Ask Custom Question

The Bridgeport city manager and the chief of police agreed on the size of the police force necessary for normal daily operations. However, they need assistance in determining the number of additional police officers needed to cover daily absences due to injuries, sickness, vacations, and personal leave. Records over the past three year show that the daily demand for additional police officers is normally distributed with a mean of 50 officers and a standard deviation of 10 officers. The cost of additional police officers exceeds the number of additional officers available; the excess demand will be covered by overtime at the rate of $240 per day for each overtime officer

a. If the number of additional police officers available is greater than demand, the city will have to pay for more additional police officers than needed. What is the cost of overestimating demand?

b. If the number of police officers available is less than demand, the city will have to use overtime to meet the demand. What is the cost of overestimating demand?

c. What is the optimal number of additional police officers that should be included in the police force?

d. On a typical day, what is the probability that overtime will be necessary?

Attachments
Purchase this Solution
Solution Summary

The solution creates a EOQ Model for the Bridgeport City. The optimal number of additional police officers that should be included into the police force are determined.

Solution Preview

The Bridgeport city manager and the chief of police agreed on the size of the police force necessary for normal daily operations. However, they need assistance in determining the number of additional police officers needed to cover daily absences due to injuries, sickness, vacations, and personal leave. Records over the past three year show that the daily demand for additional police officers is normally distributed with a mean of 50 officers and a standard deviation of 10 officers. The cost of additional police officer is based on the average pay rate of $150 per day. If the daily demand exceeds the number of additional ...

Purchase this Solution
Free BrainMass Quizzes
Know Your Statistical Concepts

Each question is a choice-summary multiple choice question that presents you with a statistical concept and then 4 numbered statements. You must decide which (if any) of the numbered statements is/are true as they relate to the statistical concept.

Measures of Central Tendency

Tests knowledge of the three main measures of central tendency, including some simple calculation questions.

Measures of Central Tendency

This quiz evaluates the students understanding of the measures of central tendency seen in statistics. This quiz is specifically designed to incorporate the measures of central tendency as they relate to psychological research.

Terms and Definitions for Statistics

This quiz covers basic terms and definitions of statistics.

View More Free Quizzes
Related BrainMass Solutions

  • Statistical Analysis

    For instance, high GPA's would tell us that student at the college are doing well academically which could be a reflection of teachers performance at the college.

  • Disparity in income in different parts of the same neighborhoods

    For instance, an increase in the housing prices of San Francisco increased prices in Oakland causing homelessness in the city (b).

  • EOQ

    The model was originally developed by F. W. Harris in 1913, though R. H. Wilson is credited for his early in-depth analysis of the model.

  • Economic Order Quantity or Just-in-Time

    EOQ can only be used in situations where the demand for the product is constant. When demand for a product fluctuates, EOQ falters.

  • Calculating ordering costs

    The firm estimates that carrying cost is 40% of the $10 unit cost, and that annual demand is about 240 units per year. The assumptions of the basic EOQ model are thought to apply. For what value of ordering cost would its action be optimal?

  • Inventory model for a Small Bakery

    In this case the EOQ model falls flat. EOQ model is applicable only for businesses with very few inventories. Using ABC ABC inventory system utilizes the 80-20 rule.

  • Readily Attainable EOQ Assumptions

    220756 Readily Attainable EOQ Assumptions The EOQ model has a number of assumptions. List them and explain whether they are readily attainable. For example, will the adjustment for quantity discounts easily work?

  • EOQ Model and Quantity Discount

    EOQ using the category, if the order size lies in the category fine, else look for the other category.

  • Economic Order Quantity (EOQ) model

    524501 Economic Order Quantity (EOQ) model The Economic Order Quantity (EOQ) model is helpful in determining accurate inventory decisions. Discuss the major inventory costs that are used in determining the EOQ.

View More Related Solutions