Question: please answer question 6 and 7 A small copy center uses five 500-sheet boxes of copy paper a week. Experience suggests that usage can be

please answer question 6 and 7
please answer question 6 and 7 A small copy
please answer question 6 and 7 A small copy
please answer question 6 and 7 A small copy
please answer question 6 and 7 A small copy
A small copy center uses five 500-sheet boxes of copy paper a week. Experience suggests that usage can be well approximated by a normal distribution with a mean of five boxes per week and a standard deviation of one-half box per week. Two weeks are required to fill an order for letterhead stationery. Ordering cost is $2, and annual holding cost is 20 cents per box. c.If a fixed interval of seven weeks instead of an ROP is used for reordering, what risk does the copy center incur that it will run out of stationery before this order arrives if it orders 36 boxes when the amount on hand is 12 boxes? Question 6 10 pts Consider Question 26 that we solved in class. Assuming that everything else stays the same, what should be the order interval (or review period) of the fixed order interval approach in Part c to achieve the same stock out risk as in Part b (stock-out risk = 0.0023)? less than 7 weeks more than 7 weeks O cannot tell O 7 weeks Question 7 10 pts Consider Question 26 that we solved in class. What should be the order quantity of the fixed order interval approach in Part c to achieve the same stock out risk as in Part b(stock-out risk = 0.0023)? (round up to 2 decimal points) 33.00 cannot tell 37.25 O 72.65

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!