Question: Dunstreet's Department Store would like to develop an inventory ordering policy with a 9 5 percenfingrobability of not stocking out. To illustrate your recommended procedure,
Dunstreet's Department Store would like to develop an inventory ordering policy with a percenfingrobability 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 two 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 four per day. There are currently sheets onhand.
How many sheets should you order?
Note: Use Excel's NORMSINV function to find the correct critical value for the given level. Do not round intermediate calculations. Round value to decimal places and final answer to the nearest whole number.
Number of sheets
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