Question: UP (continued from the previous problem) Warrior's Tear, a special vodka, is available at the Winona Liquor Store(WLS) at $20 per bottle. The demand can

UP (continued from the previous problem)
UP (continued from the previous problem)
UP (continued from the previous problem) Warrior's Tear, a special vodka, is available at the Winona Liquor Store(WLS) at $20 per bottle. The demand can be approximated by a normal distribution with a mean of 5 bottles per day and a standard deviation of 3 bottles per day. Lead time is 7 days, and there will be shipping cost $50 for each order. The new manager desires a chance of stockout of 10% or lower, and estimates the annual inventory holding cost is 20% of sales price. Assume 1 year = 365 days. When does WLS have to place an order in terms of on-hand inventory level (reorder point) to maintain stockout probability of 10% or lower? (Round up to an integer for answer) Standard Normal Cumulative Probability Table Cumulative probabilities for POSITIVE 2-values are shown in the following table: 10 .000 .01 0.02 0.03 0.04 0.05 0.06 0.0 0.5000 0.5040 0.500 0.61200.5160 0.5190 0.5230 0 0.07 0.5270 0.08 0.6319 .00 0.6350 Standard Normal Cumulative Probability Table Cumulative probabilities for POSITIVE 2-values are shown in the following table: 0.05 00 0 0.00 0.01 15000 15040 0.5398 05418 05793 05832 0.61790 6217 016554 06591 0.02 015060 05478 05871 0.6255 06628 0.03 0.5120 0.5517 0 5910 0.6293 0.6664 0.04 0.06 0.07 0.00 0.00 0.5160 0.5199 05239 05279 TO 5359 05557 0.5595 05636 05675 05714 0.594805987 080250 6054 0610308141 0.6331 0636805406 064430548006517 0.6700 0.6736 0 5844 0.6879 0.3 0.4 0.6915 0.7257 0.6950 07291 0 6985 07324 0.7542 0.7939 0.8212 0.7019 0 7357 0.7673 0.7967 0.8238 0.7054 0.7389 0.7704 0.7995 0.8284 0.7088 0.7422 0.7734 0.8023 08289 07123 0.7454 0.7764 0 8051 0.8315 0.7157 0 741 0.7794 0.8078 0.8340 07190 07517 0.7823 08108 0.8385 V 0.7224 0.7549 0.7852 0.8133 ORMAS 0.7881 0.8159 0.7910 0.8186 0 5413 0.8543 0349 0.9032 0.9192 08438 08865 0.8869 0.9049 0.9207 0 5461 0.6686 0.8888 0.9066 0.9222 08485 08508 0.8531 0.8554 08708 0.8729 0.87490.87700 0907 0.8925 0.8944 08962 0.90B20 90900.0115 0.9131 0.9238 0.9251 0.9265 0.9279 0.8577 8790 0.8980 0.9147 0.9292 0.8810 0.8997 0.9162 0.9308 OM 0.8830 0.0015 0.9177 0.9319 0.9332 0.0452 0.9554 0.9541 0.9713 0.0345 0.9463 0.9564 0 9649 0.9719 0.9357 0.9474 0.9573 0.9656 0.9725 0.9370 0.9484 09582 0.9864 9732 0.9382 0.9495 09591 0.9871 0.9738 0.9394 09505 0.9599 0.9878 0.9744 0.9408 0.9515 0 9808 0.9886 0.9750 0.9418 0.9625 0.9516 0.9893 0.9756 0.9429 0.9535 0.0625 09899 0.9781 0.9441 09545 0.9633 0.9706 0.9787 0 0.9772 09821 0.9861 0. 93 0.9918 0.9778 0.0026 0.9864 0.9898 0.9920 0.9783 0.9830 09868 0.9898 0.9922 0.9788 09834 09871 0.9901 09825 0.97930.9798 0. 98 0.0842 09875 0.9878 0.99040.9906 0.9927 0.9929 09803 0.9808 09812 09817 09846 0985000854 09857 9881 094 0907 Osaso 0.9909 0.9911 0.99130 9918 0.9934 0.9936 0.9043 0.9952 0.9938 0.9953 09865 0.9940 0.9955 0.9886 0.9975 0.9982 0.9941 0.9956 0.9967 0.9978 0.9982 0.9945 0.9959 0.9989 0.9977 0.9984 0.9868 0.9977 0.9983 0.9946 0.9980 0.9970 0.9978 0.9984 0.9948 09081 09971 0.9979 0.9985 0.9949 0.9902 0.9972 0.9979 09085 0.9951 9903 09973 0.00 09974 0.0981 0.99 0.9981 0.9988 0.9991 09987 O 0.9993 0.005 0.9087 O 001 0.9999 0.9985 OST 08987 0.9991 0.9904 0.9986 O 0.9988 0.9992 0.9994 0.9998 0.9997 0.9989 0.9992 0.9994 0.9996 09997 0.9989 0.0000 0.99920 9992 0.9994 0.9995 0000 0000 999303 0.99 9998 O . 0.9998

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