Question: highlight/bold will vote need help with B and C A health and nutrition store stocks a multivitamin with an annual demand of 1,000 bottes has
A health and nutrition store stocks a multivitamin with an annual demand of 1,000 bottes has C0=$24.50 and Ch=$7. The demand exhibits some variability such that the lead-time demand follows a normal probabaity distribution with =25 and =5. (a) What is the recommended order quantity? (Round your answer to the nearest integer.) (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.) reorder point safety stock (c) If a manager sets the reorder point at 30, what is the probability of a stock-out on any oiven order cycie? (Round your answer to four decimal piacesi) 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.)
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