Question: Anvils Works' requlres, on average, 2 , 5 0 0 tons of aluminum each week, with a standard deviatlon of 8 0 0 tons. The

Anvils Works' requlres, on average, 2,500 tons of aluminum each week, with a standard deviatlon of 800 tons. The lead tlme to
recelve its orders is uarr weeks. The holding cost for one ton of aluminum for one week is $11. It operates with a 0.98 in-stock probability.
a. On average, how many tons does it have on order?
Note: Round your answer to nearest integer.
Answer is complete and correct.
Tons
27,500
b. On average, how many tons does it have on hand?
Note: Round your answer to nearest integer.
Answer is complete but not entirely correct.
Tons
c. If Its average Inventory was 8,500 tons, what would be its average holding cost per week?
Note: Round your answer to nearest integer.
Answer is complete and correct.
Average holding cost per week
83,500
d. If Its average Inventory was 9,000 tons, what would be its average holding cost per ton of aluminum?
Note: Round your answer to 2 decimal places.
Answer is complete but not entirely correct.
Average holding cost per ton
$99,000.00
e. Suppose Its on-hand Inventory is 5,050 tons, on average. What In-stock probability does It offer to Its customers? Hint: use the
= NORM.S.DIST (z,1) Excel function.
Note: Do not round intermedlate calculations or your z value. Round your final answer to 4 decimal places.
Answer is complete but not entirely correct.
 Anvils Works' requlres, on average, 2,500 tons of aluminum each week,

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!