Question: Please help answer questions B-D. Question A is already correct. Thank youProblem 7-25 (Static) You manage Inventory for your company and use a continuous revlew

Please help answer questions B-D. Question A is already correct. Thank youProblem 7-25 (Static) You manage Inventory for your company and use a continuous revlew Inventory system to control reordering Items for stock. Your company is open for business 300 days per year. One of your most Important Items experlences demand of 20 units per day, normally distributed with a standard devlation of 3 unlts per day. You experlence a lead time on orders from your supplier of slx days with a standard deviation of two days. The unit price, regardless of order size, Is

$4.75

. Your ordering cost is

$10

. Your Inventory carrying cost Is 20 percent. You have established a service level policy of 97.5 percent on this Item. Use Table 7-2. a. What is your optimal order quantity? (Round up your answer to the next whole number.) b. What is your reorder point? (Round your answer to the nearest whole number.) c. How much safety stock do you carry? (Do not round Intermedlate calculations. Round up your answer to the next whole number.) d. What is your average Inventory? (Round your answer to the nearest whole number.)TABLE 7-2 Standard Deviations and Probabilities \table[[\table[[

Z=

Number of],[Deviations Required]],\table[[Probability of Being],[in Stock]],\table[[Probability of],[Stockout]]],[1,

84.13%

,

15.77%
 Please help answer questions B-D. Question A is already correct. Thank

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!