Question: Question 3 5 pts U PFI should use S - bags as the order-up-to level for the dog food. (Round your answer to the nearest

Question 3 5 pts U PFI should use S - bags as the

Question 3 5 pts U PFI should use S - bags as the order-up-to level for the dog food. (Round your answer to the nearest integer) Puppy Food Inc. (PFI) sells a very popular blend of dog food. Demand for the dog food has a Normal distribution with a mean 220 bags per week and a standard deviation of 30 bags per week. PFI orders the dog food from Nutritious & Delicious Co.. The lead time L-1 week. The effective lead time L+1 - 2 weeks. The shipping from Nutrition & Delicious Co. to PFI is free, there is no fixed ordering cost. The holding cost of the dog food is $0.75/bag/week. If a customer experiences stock out of the dog food in store, PFI offers to deliver the dog food to the customer's home using free expedite shipping. This expedite shipping arrangement costs PFI $20/bag/week, which is considered as the unit backorder cost. Please use the information given to answer Q1 to 26. Question 4 3 pts At the beginning of a week, PFI observes 276 bags of dog food held on hand and 180 bags of dog food in transit. How many more dog food should PFL order? Put O if you think no order should be placed. 1.945 Question 5 3 pts Question 1 5 pts At the beginning of a week, there is no on-hand inventory, and there are 25 bags of dog food as backorders. 560 bags of dog food are in the pipeline. How many more bags of dog food should PFI order? Put Oif you think no order should be placed. PFI should use % as the critical ratio for the dog food. Round off you answer to the FIRST decimal point. For example, if you answer is 86.87%, report 86.9 as your answer. 96.4 Question 6 4 pts If PFI chooses their own critical ratio at 90% for the dog food instead of using the critical ratio you calculated in Q2, how would the safety stock and on-hand inventory change, respectively? Question 2 5 pts How may bags of dog food should be held as safety stock (Round your answer to the nearest INTEGER) Note: you can calculate the z value using Excel. Safety stock increases. On-hand inventory does not change. O Safety stock decreases. On-hand inventory does not change. Safety stock increases. On-hand inventory increases. O Safety stock decreases. On-hand inventory increases. O Safety stock increases. On-hand inventory decreases. O Safety stock decreases. On-hand inventory decreases. Neither safety stock nor on-hand inventory changes

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