Question: JUST NEED HELP SOLVING B! PLEASE HIGHLIGHT WHAT GOES INTO B Problem 10-31 (Algorithmic) A product with an annual demand of 900 units has Co

JUST NEED HELP SOLVING B! PLEASE HIGHLIGHT WHATJUST NEED HELP SOLVING B!

PLEASE HIGHLIGHT WHAT GOES INTO B

Problem 10-31 (Algorithmic) A product with an annual demand of 900 units has Co = $23.00 and Ch = $5. The demand exhibits some variability such that the lead-time demand follows a normal probability distribution with y = 24 and 0 = 4. Note: Use Appendix B to identify the areas for the standard normal distribution. a. What is the recommended order quantity? Round your answer to the nearest whole number. Q* - 91 b. What are the reorder point and safety stock if the firm desires at most a 4% probability of stock-out on any given order cycle? If required, round your answers to the nearest whole number. Record point = 7 X Safety stock = 31 C. If a manager sets the reorder point at 29, what is the probability of a stock-out on any given order cycle? If required, round your answer to four decimal places. Round z value to two decimals. P(Stock-out/cycle) = 0.1056 How many times would you expect a stock-out during the year if this reorder point were used? Round your answer to the nearest whole number. Number of Stock-outs/year = 1 Feedback Check My Work Partially correct

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related General Management Questions!