Question: how would I go about solving this problem? Problem 3) A retailer has determined that demand for a purchased item averages 1400 units per week

how would I go about solving this problem?
how would I go about solving this problem?
how would I go about solving this problem?
Problem 3) A retailer has determined that demand for a purchased item averages 1400 units per week with a standard deviation of weekly demand equal to 122.3 units. The purchasing lead-time is 3 weeks. Answer the following questions assuming the company is willing to accept a stockout risk of no more than 3.2% (.0320). 12 points O CEIP bobo H Appendix B, Table B from Textbook Z .00 .01 .02 .03 .04 .OS .06 .07 .08 .09 1.5 .9332 .9345 9357 9370 .9382 9394 .9406 .9418 .9429 9441 1.6 9452 9463 .9474 .9484 .9495 .9505 .9515 9525 .9535 .9545 1.7 .9554 .9564 9573 .9582 .9591 .9599 .9608 .9616 .9625 .9633 1.8 .9641 9649 .9656 .9664 .9671 .9678 9686 .9693 .9699 .9706 1.9 .9713 9719 9726 .9732 9738 .9744 .9750 .9756 9761 .9767 2.0 9772 9778 9783 9788 9793 .9798 9803 .9808 .9812 9817 a. What is the acceptable stockout risk? What is the required service level? What z value should be used? b. How much safety stock should he held? Show your work using the Microme Word ortion de DII What is the required service level? What z value should be used? b. How much safety stock should he held? Show your work using the Microsoft Word equation editor or by typing to the right of the equation without using the equation editor. Round your answer up to an integer value if you calculate a fractional value. = Safety Stock = ZOLT - c. What reorder point should be used? Show your work using the Microsoft Word equation editor or by typing to the right of the equation without using the equation editor. Round your answer up to an integer value if you calculate a fractional value. ROP = (ax LT) + 20 VLT = =

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