Question: A retailer uses the order - up - to model to manage inventory of an item in a store on a weekly basis. The effective

A retailer uses the order-up-to model to manage inventory of an item in a store on a weekly basis. The effective lead time for replenishments is 4 weeks, i.e.,
L+1=4 weeks. Weekly demand has a mean of 172 units.
The retailer holds 38 units of inventory as safety stock. What is the value of the order-up-to level S?

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related General Management Questions!

Q:

The following partial financial information (in thousands of dollars) is available for Thole, Inc.: Corporate overhead costs at Thole are allocated to divisions based on relative sales. Required a....

Q:

A retail chain currently sells a slow-selling product through its 100 brick-and-mortar stores. Weekly demand at each store follows a Poisson distribution, with an average of 1.0 unit. The item costs...

Q:

1 . A firm implements the order - up - to model with weekly ordering. In week 1 1 , it observes that demand is much lower than expected demand. At the start of week 1 2 ( before it orders ) , it...

Q:

need this 3 asap please 21 5 points A retailer uses the order-up-to model to manage inventory of an item in a store on a weekly basis. The effective lead time for replenishments is 4 weeks. Weekly...

Q:

5 points A retailer uses the order-up-to model to manage inventory of an item in a store on a weekly basis. The effective lead time for replenishments is 4 weeks. Weekly demand has a mean of 55...

Q:

A retailer uses the order - up - to model to manage inventory of an item in a store on a weekly basis. The effective lead time for replenishments is 4 weeks, l . e . , L + 1 = 4 weeks. Weekly demand...

Q:

5 points A retailer uses the order-up-to model to manage inventory of an item in a store on a weekly basis. The effective lead time for replenishments is 4 weeks Weekly demand has a mean of 55 units....

Q:

A retailer uses the order - up - to model to manage inventory of an item in a store on a weekly basis. The effective lead time for replenishments is 4 weeks, l . e . , L + 1 = 4 weeks. Weekly demand...

Q:

10 Spoints A retailer uses the order-up-to model to manage inventory of an item in a store on a weeldy basis. The effective lead time for replenishments is 4 weeks Weekly demand has a mean of 55...

Q:

PA 14-3 (Algo) A retailer uses the order-up-to model to... (Round your answer to 2 decimal places.) A retailer uses the order-up-to model to manage inventory of an item in a store. The lead time for...

Q:

A retailer uses the order - up - to model to manage inventory of an item in a store. The lead time for replenishments is 5 weeks and it can place orders weekly. Weekly demand is Poisson with mean 0 ....

Q:

Consider the sensor less, two-location vacuum world under Murphys Law. Draw the belief state space reachable from the initial belief state {1, 2, 3, 4, 5, 6, 7, 8), and explain why the problem is...

Q:

The bond indenture for the 10-year, 912 % debenture bonds dated January 2, 2007, required working capital of $350,000, a current ratio of 1.5, and a quick ratio of 1 at the end of each calendar year...

Q:

Mistral Inc. reported $85,000 in net profit for the year using absorption costing. Mistral Inc. reported $85,000 in net profit for the year using absorption costing. The company had no units in...

Q:

2. The force of interest 8 is a function of time and at any time t, measured in years, is given by the formula: 8(t) = 0.02 +0.0020 8(t) = 0.03 +0.005t Osts5 5 st s 10 a) Calculate the discount...