Question: Anvils Works' requires, on average, 2 , 6 0 0 tons of aluminum each week, with a standard deviation of 8 0 0 tons. The
Anvils Works' requires, on average, tons of aluminum each week, with a standard deviation of tons. The lead time to receive its orders is weeks. The holding cost for one ton of aluminum for one week is $ It operates with a instock probability.
On average, how many tons does it have on order?
On average, how many tons does it have on hand?
If its average inventory was tons, what would be its average holding cost per week?
If its average inventory was tons, what would be its average holding cost per ton of aluminum?
Suppose its onhand inventory is tons, on average. What instock probability does it offer to its customers?
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