HIGHLIGHT/BOLD ANSWERS

WILL VOTE

NEED HELP WITH B AND C

You may need to use the appropriate technology to answer this question. A health and nutrition store stocks a multivitamin with an annual demand of 1,000 bottles has C0=$24.50 and Ch=$7. The demand exhibits some variability such that the lead-time demand follows a normal probability distribution with =25 and =5. (b) What are the reorder point and safety stock if the store desires at most a 4% probability of stock-out on any given order cycle? (Round your answers to the nearest integer.) \begin{tabular}{l|l} reorder point & X \\ safety stock & X \end{tabular} (c) If a manager sets the reorder point at 30 , what is the probability of a stock-out on any given order cycle? (Round your answer to four decimal places.) x How many times would you expect a stock-out during the year if this reorder point were used? (Round your answer to the nearest integer.)