Question: Problem: E - buy, a popular consumer electronics store in Lawrence, follows a base stock policy for its best selling vacuum cleaner. The weekly demand
Problem: Ebuy, a popular consumer electronics store in Lawrence, follows a base stock policy for its best selling vacuum cleaner. The weekly demand for this brand of vacuum cleaners is normally distributed with a mean of and a standard deviation of The manufacturer of this vacuum cleaner takes weeks to replenish an order from Ebuy. Ebuy estimates that the holding cost for the vacuum cleaner is $unitweek while the backorder cost is $unitweek
Part : What should be Ebuy's target basestock level to balance their backorder and inventory holding cost? If your answer is not an integer, provide at least three decimal places, eg
Part : Given the optimal basestock level you calculated in the previous question, what is Ebuy's stockout probability for this brand of vacuum cleaners? If your answer is not an integer, provide at least three decimal places, eg
Part :Ebuy has realized that they have underestimated the backorder cost. What basestock level should they choose to achieve a instock probability of If your answer is not an integer, provide at least three decimal places, eg
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