Question: Problem 14-35 (Algorithmic) Statewide Auto Parts uses a four-week periodic review system to reorder parts for its inventory stock. A one-week lead time is required

Problem 14-35 (Algorithmic) Statewide Auto Parts

Problem 14-35 (Algorithmic) Statewide Auto Parts uses a four-week periodic review system to reorder parts for its inventory stock. A one-week lead time is required to fill the order. Demand for one particular part during the five-week replenishment period is normally distributed with a mean of 19 units and a standard deviation of 7 units. a. At a particular periodic review, 8 units are in inventory. The parts manager places an order for 15 units. What is the probability that this part will have a stock-out before an order that is placed at the next four-week review period arrives? If required, round your answer to four decimal places. .2100 x b. Assume that the company is willing to tolerate a 2.2% chance of a stock-out associated with a replenishment decision. How many parts should the manager have ordered in part (a)? If required, round your answer to the nearest whole number. The manager should have ordered 36 x units. What is the replenishment level for the four-week periodic review system? What is the replenishment level for the four-week periodic review system? The replenishment level for the four-week periodic review system is 49 X

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