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, 2800 tons of aluminum each week, with a
standard deviation of 1000 tons. The demand follows a normal distribution. The lead
time to receive its orders is 10 weeks. Orders are made weekly. The holding cost for
one ton of aluminum for 1 week is $11. It operates with a 0.98 in-stock 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 on-hand inventory is 6375 tons, on average. What in-stock probability
does it offer to its customers? What are its weekly inventory turns?

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