Question: Cyber Chemicals uses liquid nitrogen on a regular basis. Average daily demand is normally distributed with a mean of 177 gallons and a standard deviation

 Cyber Chemicals uses liquid nitrogen on a regular basis. Average daily

Cyber Chemicals uses liquid nitrogen on a regular basis. Average daily demand is normally distributed with a mean of 177 gallons and a standard deviation of 47. Cyber operates Six days a week and orders from its supplier once each week. The supplier takes one week to deliver Cyber's order. a. Suppose an order-up-to level of 3000 is used. What is the average order quantity? b. Suppose an order-up-to level of 2490 is used. What is the expected on-hand inventory? Use Table 14.1 c. Suppose an order-up-to level of 2590 is used. What is the expected on-order inventory? (Round your answer to 4 decimal places.) d. Suppose an order-up-to level of 2697 is used. What is the in-stock probability? Use Table 14.1 (Round your answer to 4 decimal places.) e. Suppose an order-up-to level of 2425 is used. What is the stockout probability? Use e. Table 14.1 f. Suppose Cyber Chemicals wants a 0.96 in-stock probability. What should the order-upto level be? Use Excel and round to nearest integer

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!