Question: Cyber Chemicals uses liquid nitrogen on a regular basis. Average daily demand is normally distributed with a mean of 185 gallons and a standard deviation

Cyber Chemicals uses liquid nitrogen on a regular

Cyber Chemicals uses liquid nitrogen on a regular basis. Average daily demand is normally distributed with a mean of 185 gallons and a standard deviation of 48. 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 6,000 is used. What is its average order quantity? b. Suppose an order-up-to level of 2,490 is used. What is its expected on-hand inventory? Use Table 14.1. c. Suppose an order-up-to level of 2,640 is used. What is its expected on-order inventory

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!