Question: C&A orders on a weekly basis. Its weekly demand is 100 units with a standard deviation of 10 units. The holding cost is $10 per

C&A orders on a weekly basis. Its weekly demand is 100 units with a standard deviation of 10 units. The holding cost is $10 per unit per week and a 0.99 in-stock probability is desired. What is C&As weekly inventory holding cost if lead time is three weeks?

In-stock probability Safety factor, z
0.9000 1.28
0.9800 2.05
0.9900 2.33
0.9950 2.58
0.9999 3.72

A.

3411

B.

3466

C.

3211

D.

3266

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!