Question: Problem 10-31 (Algorithmic) $32.50 and Ch = $5. The demand exhibits some variability such that the lead-time demand follows a normal A product with an

Problem 10-31 (Algorithmic) $32.50 and Ch = $5.

Problem 10-31 (Algorithmic) $32.50 and Ch = $5. The demand exhibits some variability such that the lead-time demand follows a normal A product with an annual demand of 1000 units has Co probability distribution with y = 24 and o = 4. Note: Use Appendix B to identify the areas for the standard normal distribution. a. What is the recommended order quantity? Round your answer to the nearest whole number. Q = b. What are the reorder point and safety stock if the firm desires at most a 6% probability of stock-out on any given order cycle? If required, round your answers to the nearest whole number. Record point = Safety stock = c. If a manager sets the reorder point at 29, what is the probability of a stock-out on any given order cycle? If required, round your answer to four decimal places. Round z value to two decimals. P(Stock-out/cycle) = How many times would you expect a stock-out during the year if this reorder point were used? Round your answer to the nearest whole number. Number of Stock-outs/year =

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