Your firm uses the continuous review system to manage a product, and operates 52 weeks a year. The product has the following characteristics: Ordering cost $40 per order • Inventory-holding cost $5 per unit per year Leadtime = 4 weeks %3D Weekly demand is normally distributed with mean 200 and standard deviation 12. You want to satisfy a 95% probability of not running out of stock in any one ordering cycle. (Note! z 95=1.65) (a) What is the average demand during leadtime? units (b) What should be the safety stock? Answer with a whole number. units (c) What should be the reorder point? Answer with a whole number. units (d) What should be the order quantity? Answer with a whole number. units
Your firm uses the continuous review system to manage a product, and operates 52 weeks a year. The product has the following characteristics: Ordering cost $40 per order • Inventory-holding cost $5 per unit per year Leadtime = 4 weeks %3D Weekly demand is normally distributed with mean 200 and standard deviation 12. You want to satisfy a 95% probability of not running out of stock in any one ordering cycle. (Note! z 95=1.65) (a) What is the average demand during leadtime? units (b) What should be the safety stock? Answer with a whole number. units (c) What should be the reorder point? Answer with a whole number. units (d) What should be the order quantity? Answer with a whole number. units
Practical Management Science
6th Edition
ISBN:9781337406659
Author:WINSTON, Wayne L.
Publisher:WINSTON, Wayne L.
Chapter2: Introduction To Spreadsheet Modeling
Section: Chapter Questions
Problem 20P: Julie James is opening a lemonade stand. She believes the fixed cost per week of running the stand...
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Please answer all the parts, please?
![Your firm uses the continuous review system to manage a product, and operates 52 weeks a year.
The product has the following characteristics:
Ordering cost = $40 per order
Inventory-holding cost = $5 per unit per year
%3D
Leadtime = 4 weeks
Weekly demand is normally distributed with mean 200 and standard deviation 12. You want to
satisfy a 95% probability of not running out of stock in any one ordering cycle. (Note! z 95=1.65)
(a) What is the average demand during leadtime?
units
(b) What should be the safety stock? Answer with a whole number.
units
(c) What should be the reorder point? Answer with a whole number.
units
(d) What should be the order quantity? Answer with a whole number.
units](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F365396af-0d0c-480c-9611-eed83c8f9d7a%2Fca5e29be-4b44-4485-9ee5-066ea4666b4a%2Fqkxiinc_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Your firm uses the continuous review system to manage a product, and operates 52 weeks a year.
The product has the following characteristics:
Ordering cost = $40 per order
Inventory-holding cost = $5 per unit per year
%3D
Leadtime = 4 weeks
Weekly demand is normally distributed with mean 200 and standard deviation 12. You want to
satisfy a 95% probability of not running out of stock in any one ordering cycle. (Note! z 95=1.65)
(a) What is the average demand during leadtime?
units
(b) What should be the safety stock? Answer with a whole number.
units
(c) What should be the reorder point? Answer with a whole number.
units
(d) What should be the order quantity? Answer with a whole number.
units
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