Question: Dunstreet's Department Store would like to develop an inventory ordering policy with a 9 0 percent probability of not stocking out. To illustrate your recommended
Dunstreet's Department Store would like to develop an inventory ordering
policy with a percent probability of not stocking out. To illustrate your
recommended procedure, use as an example the ordering policy for white
percale sheets.
Demand for white percale sheets is per year. The store is open days
per year. Every four weeks days inventory is counted and a new order is
placed. It takes days for the sheets to be delivered. Standard deviation of
demand for the sheets is five per day. There are currently sheets onhand.
How many sheets should you order?
Note: Use Excel's NORM.SINV function to find the value. Do not round
intermediate calculations. Round value to decimal places and final
answer to the nearest whole number.
Number of sheets
Step by Step Solution
There are 3 Steps involved in it
1 Expert Approved Answer
Step: 1 Unlock
Question Has Been Solved by an Expert!
Get step-by-step solutions from verified subject matter experts
Step: 2 Unlock
Step: 3 Unlock
