Question: please solve it only it your sure of the answer Lulu hypermarket orders flour bags that are measured in units. The daily demand is normally

please solve it only it your sure of the answer
please solve it only it your sure of the answer Lulu hypermarket orders flour bags that are measured in units. The daily demand is normally distributed with a mean of 1000 units. and standard deviation of 100 units. However, the lead time varies, but assumed to have followed normal distribution with an average of 7 days, and a standard deviation of 1.5 days. Lulu wishes to maintain a 80% service level. What should be the safety stock? Round- up to the nearest integer Oa 2005 Ob 1283 Oc None is correct Od 1950 Oe 2514 Ot 1353 At a tourist destination in Oman, a local handmade souvenir shop is able to sell over 300 units of a particular Omani khanjar (knife) on an average yearly. However, the demand of this product is uncertain and thus during the lead time the demand is assumed to be normally distributed with mean of 20 units and a standard deviation of 5 units. Ordering cost is 5 OMR per order, and the holding cost is 15% of selling price of the item with OMR 20 per unit. If the shop is willing to accept only 2 stockout per year. What should be the reorder level? Round up to the nearest integer O None is correct b. 40 OC 25 Od 35 Oe33

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!