Click Pix, a large discount camera store in New York City is open six days a week, 52 weeks a year The store recently began selling PS58 model Sonic camcorders, which cost $520 00 each and retail for $649 99 Sales average 60 units per week The cost to place an order with Sonic is $90 and delivery time is seven business days Click Pix uses an 18 annual maintenance cost rate for camcorders Additionally, the store manager wants to have safety stock since this is a new product and the demand is not fully understood The store estimates that the delivery time demand follows a normal distribution with a mean of 70 units and a standard deviation of 15 units Ideally, the store manager is trying to achieve a 90 service level Since there are a number of questions associated with this problem, it is highly recommended that you solve it on scrap paper (or Excel) that you can refer to The order point is 70 60

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Question: Click Pix, a large discount camera store in New York City is open six days a week, 52 weeks a year. The store recently began

Click Pix, a large discount camera store in New York City is open six days a week, 52 weeks a year. The store recently began selling PS58 model Sonic camcorders, which cost $520.00 each and retail for $649.99. Sales average 60 units per week. The cost to place an order with Sonic is $90 and delivery time is seven business days. Click Pix uses an 18% annual maintenance cost rate for camcorders.

Additionally, the store manager wants to have safety stock since this is a new product and the demand is not fully understood. The store estimates that the delivery time demand follows a normal distribution with a mean of 70 units and a standard deviation of 15 units. Ideally, the store manager is trying to achieve a 90% service level.

Since there are a number of questions associated with this problem, it is highly recommended that you solve it on scrap paper (or Excel) that you can refer to

The order point is:

70

60

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