Question: 1 . Weekly demand for detergent at a Carrefour store is normally distributed, with a mean of 3 , 0 0 0 and a standard

1. Weekly demand for detergent at a Carrefour store is normally distributed, with a mean of 3,000 and a standard deviation of 1,200. The store manager continuously monitors detergent inventory and places a replenishment order of 10,000 units when there are 8,000 units in inventory. The supplier takes two and a half weeks to supply a Carrefour order.
a) What CSL does the store achieve? State your answer with 3 decimal places.
b) What fill rate does the store achieve? State your answer with 3 decimal places.
c) What is the average flow time in weeks? State your answer with 2 decimal
places.
d) If the carrying cost of one unit in inventory for one year is $1.50, what is the
annual carrying cost based on the above inventory policy? Round your answer to the nearest integer.
2. Weekly demand for paper towels at a Target store is normally distributed, with a mean of 1,700 and a standard deviation 800. The supplier takes three weeks to supply a Target order, which is for a batch size of 9,000. Target is aiming for a fill rate of 98.5% and monitors its inventory continuously.
a) How much safety inventory of paper towels should Target carry? Round your answer to the nearest integer.
b) What should its ROP be?
3. Weekly demand for handbags at Liverpool, a Mexican department store chain, is normally distributed with a mean of 3,600 and a standard deviation of 2,100. The replenishment lead time from the supplier is 5 weeks. Liverpool uses a periodic review policy under which it reorders handbags every 9 weeks. It currently uses an order-up-to- level of 58,000.
a) What is the average order size? Round your answer to the nearest integer. b) How much safety inventory of handbags does Liverpool carry? Round your
answer to the nearest integer.
c) What CSL does it achieve? Round your answer to 4 decimal places.
d) What order up to level should it use if it wants a CSL of 98%? Round your
answer to the nearest integer.

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