A fabricating shop orders supplies every 8 days. The lead time for deliveries is 7 days....

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A fabricating shop orders supplies every 8 days. The lead time for deliveries is 7 days. Demand for iron averages 26 pounds per day with a standard deviation of 2.9 pounds. The holding cost for iron is $0.7 per pound per day. The restaurant wants to achieve an in- stock probability rate of 98.78% for iron. On average, how many pounds of iron will the fabricating shop have on hand? Note: Round your answer to 1 decimal place. On-hand inventory pounds A fabricating shop orders supplies every 8 days. The lead time for deliveries is 7 days. Demand for iron averages 26 pounds per day with a standard deviation of 2.9 pounds. The holding cost for iron is $0.7 per pound per day. The restaurant wants to achieve an in- stock probability rate of 98.78% for iron. On average, how many pounds of iron will the fabricating shop have on hand? Note: Round your answer to 1 decimal place. On-hand inventory pounds

Answer rating: 100% (QA)

To calculate the average onhand inventory for the fabricating shop we need to consider the lead time ... View the full answer