Question: I need help with part (b) and (c) please [0.08/0.4 Points] DETAILS PREVIOUS ANSWERS ASWMSCI15 10.E.031. MY NOTES ASK YOUR TEACHER PRACTICE ANOTHER A product
I need help with part (b) and (c) please
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[0.08/0.4 Points] DETAILS PREVIOUS ANSWERS ASWMSCI15 10.E.031. MY NOTES ASK YOUR TEACHER PRACTICE ANOTHER A product with an annual demand of 1,000 units has C. = $24.50 and Ch = $9. The demand exhibits some variability such that the lead-time demand follows a normal probability distribution with u = 25 and o = 5. (a) What is the recommended order quantity? (Round your answer to the nearest Integer.) 73.79 (b) What are the reorder point and safety stock if the firm desires at most a 3% probability of stock-out on any given order cycle? (You may need to use the appropriate appendix table or technology to answer this question. Round your answers to the nearest integer.) reorder point 9 X safety stock 34 X (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.) 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.) Need Help? Read It Submit
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