Question: Anvils Works requires, on average, 2 8 0 0 tons of aluminum each week, with a standard deviation of 1 0 0 0 tons. The
Anvils Works requires, on average, tons of aluminum each week, with a
standard deviation of tons. The demand follows a normal distribution. The lead
time to receive its orders is weeks. Orders are made weekly. The holding cost for
one ton of aluminum for week is $ It operates with a instock probability.
a On average, how many tons does it have on route?
b On average, how many tons does it have on hand?
c Suppose its onhand inventory is tons, on average. What instock probability
does it offer to its customers? What are its weekly inventory turns?
Step by Step Solution
There are 3 Steps involved in it
1 Expert Approved Answer
Step: 1 Unlock
Question Has Been Solved by an Expert!
Get step-by-step solutions from verified subject matter experts
Step: 2 Unlock
Step: 3 Unlock
