Question: The daily demand for a component at a hardware store is normally distributed, with an average of 100 and a standard deviation of 10 units.


The daily demand for a component at a hardware store is normally distributed, with an average of 100 and a standard deviation of 10 units. The store manager is willing to accept a risk of stockout 3% of the time during the lead time, which is constant at 6 days. Answer the following questions. Write your final answer only (without intermediate steps) for the fill-in-the-blank questions. Question 10 (3 points) Saved The service level that the store manager wants to maintain = A). Round the final answer to two decimal places, e.g., 0.12, when necessary. Question 11 (3 points) The appropriate value of Z (i.e., the number of standard normal deviations) = A . Round the final answer to two decimal places, e.g., 0.12, when necessary. Question 12 (3 points) Saved Safety stock = A units. Round the final answer (if it is not an integer) to the nearest integer. Question 13 (3 points) Saved Reorder point = units. Round the final answer (if it is not an integer) to the nearest integer
Step by Step Solution
There are 3 Steps involved in it
1 Expert Approved Answer
Step: 1 Unlock
Question Has Been Solved by an Expert!
Get step-by-step solutions from verified subject matter experts
Step: 2 Unlock
Step: 3 Unlock
