Question: Please find the incorrect answer. Anvils Works' requires, on average, 3,000 tons of aluminum each week, with a standard deviation of 900 tons. The lead

Please find the incorrect answer.
Anvils Works' requires, on average, 3,000 tons of aluminum each week, with a standard deviation of 900 tons. The lead time to receive its orders is 12 weeks. The holding cost for one ton of aluminum for one week is $12. It operates with a 0.95 in-stock probability. a. On average, how many tons does it have on order? Note: Round your answer to nearest Integer. Answer is complete and correct. b. On average, how many tons does it have on hand? Note: Round your answer to nearest Integer. Answer is complete but not entirely correct. c. If its average inventory was 4,500 tons, what would be its average holding cost per week? Note: Round your answer to nearest Integer. d. If its average inventory was 13,000 tons, what would be its average holding cost per ton of aluminum? Note: Round your answer to 2 declmal ploces. e. Suppose its on-hand inventory is 4,975 tons, on average. What in-stock probability does it offer to its customers? Note: Round your answer to 4 declmal ploces
Step by Step Solution
There are 3 Steps involved in it
Get step-by-step solutions from verified subject matter experts
