Question: The annual demand for a specific product is 3 , 5 0 0 units and has the following ordering and holding costs: Co = $
The annual demand for a specific product is units and has the following ordering and holding costs: Co $ per order and Ch $ per unit. Demand exhibits some variability such that the leadtime demand follows a normal probability distribution with units and units.What is the recommended order quantity for this product? If the manager sets the reorder point at units, what is the probability of a stockout in any given order cycle? Express your answer as a decimal to decimal places using standard rounding rules. Given the probability of a stockout in problem b how many times would expect a stockout to occur during the year if the reorder point units were used? Express your answer to decimal places using standard rounding rules. Using the information in Problem assume that the company wants at most a probability of a stockout during any given order cycle. Answer the following questions:
Problem d points What is the Zvalue if the company wants at most a probability of a stockout? Express your answer to decimal places using standard rounding rules. What is the reorder point if the company wants at most a probability of a stockout? Express your answers as a whole number using standard rules.
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