Question: 1 . Weekly demand for detergent at a Carrefour store is normally distributed, with a mean of 3 , 0 0 0 and a standard
Weekly demand for detergent at a Carrefour store is normally distributed, with a mean of and a standard deviation of The store manager continuously monitors detergent inventory and places a replenishment order of units when there are 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 decimal places.
b What fill rate does the store achieve? State your answer with decimal places.
c What is the average flow time in weeks? State your answer with decimal
places.
d If the carrying cost of one unit in inventory for one year is $ what is the
annual carrying cost based on the above inventory policy? Round your answer to the nearest integer.
Weekly demand for paper towels at a Target store is normally distributed, with a mean of and a standard deviation The supplier takes three weeks to supply a Target order, which is for a batch size of Target is aiming for a fill rate of 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
Weekly demand for handbags at Liverpool, a Mexican department store chain, is normally distributed with a mean of and a standard deviation of The replenishment lead time from the supplier is weeks. Liverpool uses a periodic review policy under which it reorders handbags every weeks. It currently uses an orderupto level of
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 decimal places.
d What order up to level should it use if it wants a CSL of Round your
answer to the nearest integer.
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