Question: Cyber Chemicals uses liquid nitrogen on a regular basis. Average dally demand is normally distributed with a mean of 184 gallons and a standard deviation
Cyber Chemicals uses liquid nitrogen on a regular basis. Average dally demand is normally distributed with a mean of 184 gallons and a standard deviation of 46 . 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 4000 is used. What is the average order quantity? b. Suppose an order-up-to level of 2450 is used. What is the expected on-hand inventory? Use Table 14.1 c. Suppose an order-up-to level of 2560 is used. What is the expected on-order inventory? (Round your answer to 4 decimal places.) d. Suppose an order-up-to level of 2706 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 2400 is used. What is the stockout probability? Use e. Table 14.1 f. Suppose Cyber Chemicals wants a 0.955 in-stock probability. What should the order-upto level be? Use Excel and round to nearest integer
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