8. Let us consider a one period inventory decision for an item whose demand is Normally distributed...
Question:
8.
Let us consider a one period inventory decision for an item whose demand is Normally distributed with mean 1000 units and standard deviation 150 units. The cost of manufacturing the item is $15 per unit and the selling price of the item is $25. What is the optimal stocking quantity that maximizes the expected profit?
1000
962
1024
150
9.
Consider a periodic review policy with normally distributed demand with a mean daily demand of 1000 units and a standard deviation of daily demand of 100 units. The lead-time of delivery is 9 days. The review period is 16 days. Take Z= 1.97. What is the base stock of the inventory system?
985
25,000
25,985
9,000
10.
The daily demand for a product is Normally distributed with mean 100 units per day and standard deviation 25 units. The lead time of delivery of the product is 5 days. The manager changed the review policy from a continuous review policy to a base stock (periodic) review policy, where the manager reviews the inventory every 10 days. The service level is 95% (z_0.95=1.64). What is the increase in safety stock due to the change in review policy? (rounded to the nearest integer)
40 units
159 units
92 units
67 units
Practical Management Science
ISBN: 978-1305250901
5th edition
Authors: Wayne L. Winston, Christian Albright