Question

Sherry Clower is trying to figure out how many custom books to order for her class of 25 students. In the past, the number of students buying books has shown the following demand pattern:

NUMBER OF STUDENTS PERCENTAGE OF
WHO BOUGHT A BOOK OBSERVATIONS
16 or Fewer............. 0%
17.................. 4%
18................ 15%
19.................. 17%
20.................. 18%
21.................. 26%
22.................. 10%
23.................. 6%
24.................. 4%
25.................. 0%
a. Suppose each custom book costs Sherry $12 to print, and she sells the books to the students for $50 each. Excess books must be scrapped. What is the target service level? What is the target stocking point?
b. Suppose printing costs increase to $22. Recalculate the new target service level and target stocking point. What happens?



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  • CreatedApril 10, 2015
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