A computer store sells an average of 1000 new iPhones each year. Annual demand is normally distributed with a standard deviation of 41 iPhones. The store orders directly from Apple. Each order is filled in two (2) weeks. The cost of placing an order is $50, and the annual cost of holding one iPhone in inventory is $10. Find the right QR system and safety stock for the backordered case (c_B = $20) and lost sales case (c_LS = $40). What is Type 1 service? What is Type 2 service? Also update the reorder points to achieve 99.99% Type 2 service; how much additional safety stock is required in each case? Remember to answer these questions under each case, backordered and lost sales.

Answer rating: 100% (QA)

SOLUTION A gadgets store has gotten a shipment of 20 table rad... View the full answer