Question: A supplier for an electronics store has introduced quantity discounts to encourage larger order quantities of cameras. The price schedule is: Quantity purchased fewer than

A supplier for an electronics store hasA supplier for an electronics store has

A supplier for an electronics store has introduced quantity discounts to encourage larger order quantities of cameras. The price schedule is: Quantity purchased fewer than 525 at least 525 Price per unit $80 $75 Suppose the monthly demand at a retail store that buys from this retailer and resells is 175 units. The supplier charges a fixed cost of $180 per shipment. The cameras are expected to sell well for multiple seasons, so multiple replenishment opportunities are possible. What is the stock-out probability the retailer achieves by setting the reorder point to 215 units if the standard deviation of the monthly demand is 20 and the supplier can guarantee a 1-month lead time? (Note: Use the z-table from the lecture notes, and choose the closest answer.) Multiple Choice 3.0% O 10.15% O 4.0% 2.28%

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