Question: first pic is the problem for the questions 1 w,x 3 Working with the (Q,R) Model A local paint store uses a (Q,R) inventory system
first pic is the problem for the questions


1 w,x
3 Working with the (Q,R) Model A local paint store uses a (Q,R) inventory system to control its stock levels. For a popular eggshell indoor paint, historical data shows the distribution of annual demand is approximately normal, with a mean of 468 cans and variance of 1872 , expressed as N(468,1872). Replenishment lead time for this paint is about 14 weeks. Each can of paint costs the store $6. The fixed cost of replenishment is $45 per order and holding costs are based on a 20% annual interest rate. What is the annual inventory cost IC under the EOQ? a. $805.46 b. $224.82 c. $653.44 d. \$429.16 Now, we want to transform the demand of the paint into weeks (to accommodate for the leac time units). Considering the normal 52-week year, the weekly mean E[D] and the weekly standard deviation D is: E[D]=numberofweeksaverageannualdemandandD=numberofweeksannualvariance What is the distribution of the weekly demand D ? a. D N(39,12) b. DN(9,6) c. DN(39,144) d. D-N(9, 36) Clear my choice
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
