Question: unstreet's Department Store would like to develop an inventory ordering policy with a 9 8 percent probability of not stocking out. To illustrate your recommended
unstreet's Department Store would like to develop an inventory ordering policy with a percent probability of not stocking out. To illustrate your recommended procedure, use as an example the ordering policy for white percale sheets.
Demand for white percale sheets is per year. The store is open days per year. Every three weeks days inventory is counted and a new order is placed. It takes days for the sheets to be delivered. Standard deviation of demand for the sheets is four per day. There are currently sheets on hand.
How many sheets should you order? Use Excel's NORMSINV function to find the correct critical value for the given alpha level. Do not round intermediate calculations. Round z value to decimal places and final answer to the nearest whole number.
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