Soap and Towels is a retailer of home goods. They receive inventory from their supplier with a

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Soap and Towels is a retailer of home goods. They receive inventory from their supplier with a 2-week lead time. Assume they order weekly, and they use the order-up-to model for choosing base stock levels. A peppermint soap sells on average one box every 5 weeks.

a. How many boxes of the peppermint soap do they order on average each week?

b. Suppose they choose a base stock level of 1 for the peppermint soap. What is their average inventory (in boxes)?

c. Suppose they choose a base stock level of 2 for the peppermint soap. What is their stockout probability?

d. Suppose they want to minimize inventory while achieving at least a 0.9875 in-stock probability for the peppermint soap. What base stock level (in boxes) should they use?

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a 02 Weekly demand is 15 02 boxes Because they order week...View the full answer

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Question Posted: Aug 13, 2020 05:39 AM

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Soap and Towels is a retailer of home goods. They receive inventory from their supplier with a

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a 02 Weekly demand is 15 02 boxes Because they order week...View the full answer

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