Avon Barksdale's operation uses large quantities of prepaid cell phones, on average 400 per week with...

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Avon Barksdale's operation uses large quantities of prepaid cell phones, on average 400 per week with a standard deviation of 40. The lead time for their own brand of prepaid cell phones is three weeks and they have a lot size of 250 phones. a) What is the standard deviation of demand during their lead time? b) Suppose Mr. Barksdale sets his reorder point at 1400 phones. What is his average cell phone inventory? c) What is the average flow time of a phone if the reorder point used by Mr. Barksdale is 1400 phones? Avon Barksdale's operation uses large quantities of prepaid cell phones, on average 400 per week with a standard deviation of 40. The lead time for their own brand of prepaid cell phones is three weeks and they have a lot size of 250 phones. a) What is the standard deviation of demand during their lead time? b) Suppose Mr. Barksdale sets his reorder point at 1400 phones. What is his average cell phone inventory? c) What is the average flow time of a phone if the reorder point used by Mr. Barksdale is 1400 phones?

Answer rating: 100% (QA)

a To calculate the standard deviation of demand during the lead time we need to multiply the standar... View the full answer