chap. 10. 5b

LIN PRACTICE ANOTHER A product with an annual demand of 1,000 units has Co-$24.50 and he the demand aktibits some variability such that the head time demand follows a normal probability distribution with p=25 and o-5 (a) What is the recommended order quantity? (Round your answer to the nearest integer.) 83 67 (b) What are the reorder point and safety stock if the firm desires at most a 3% probability of stock out on any given order cycle? [You may need to use the appropriate appendix table or technology to answer this question. Round your answers to the nearest Integer) reorder point 344 safety stock 9.4 (c) If a manager sets the reorder point at 30, what is the probability of a stock out on any given order cycle? (Round your answer to four decimal places.) 1 X How many times would you expect a stock out during the year if this reorder point were used? (Round your answer to the nearest integer) 0.8413 Need Help? Read