Question: show how to solve on paper please weekly demand for area rugs at a Pottery Barn distribution center (DC) is normally distributed with a mean

show how to solve on paper please
show how to solve on paper please weekly demand for area rugs

weekly demand for area rugs at a Pottery Barn distribution center (DC) is normally distributed with a mean of 79 units/day and standard deviation of 26 units/day. Pottery Barn orders rugs at a unit cost of $253. The annual cost of carrying inventory at the store is 44% of the purchase cost per unit per year. It takes 27 days to receive a delivery. The store reviews its inventory continuously. Assume 52 weeks/year, 7 days/week and 364 days/year. Compute the annual holding cost of the safety stock (in \$) needed to maintain a cycle service level of 98%. - Carry your calculations to at least 3 decimal places. - Round your answer to the nearest tenth of a dollar (one decimal place). A table of z-values is provided for your reference

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related General Management Questions!