Question: QUESTION 3 In a continuous review inventory system, the lead time for door knobs is 5 weeks. The standard deviation of demand during the lead

QUESTION 3 In a continuous review inventory

QUESTION 3 In a continuous review inventory

QUESTION 3 In a continuous review inventory system, the lead time for door knobs is 5 weeks. The standard deviation of demand during the lead time (OdlT) is 85 units. The desired cycle-service level is 99 percent. The supplier of door knobs streamlined its operations and now quotes a one-week lead time. How much can safety stock be reduced without reducing the 99 percent cycle-service level? (Use 2 = 2.33; round to the nearest unit) QUESTION 4 Nationwide Auto Parts uses a periodic review inventory control system for one of its stock items. The review interval is 6 weeks, and the lead time for receiving the materials ordered from its wholesaler is 3 weeks. Weekly demand is normally distributed, with a mean of 100 units and a standard deviation of 20 units. 1. What should be the target inventory level if the firm desires 97.5% stockout protection?(Use Z = 1.96; round to the nearest whole unit) 2. If 350 units were in stock at the time of a periodic review, how many units should be ordered

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