Question: Problem 1 7 - 1 0 The annual demand for a product is 1 5 , 6 0 0 units. The weekly demand is 3

Problem 17-10
The annual demand for a product is 15,600 units. The weekly demand is 300 units with a standard deviation of 90 units. The cost to place an order is $31.20, and the time from ordering to receipt is four weeks. The annual inventory carrying cost is $0.10 per unit.
(a) Find the reorder point necessary to provide a 98 percent service probability. (Round your answer to the nearest whole number.)
Reorder point 1,569+-1 units
(b) Suppose the production manager is asked to reduce the safety stock of this item by 50 percent. If she does so, what will the nehi service probability be?(Round your answer to 1 decimal place. Omit the "%" sign in your response.)
Service probability
 Problem 17-10 The annual demand for a product is 15,600 units.

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