Question: Use Table 1 4 . 1 . ACold Incorporated is a frozen - food distributor with 1 0 warehouses across the country. Ivan Tory, one

Use Table 14.1. ACold Incorporated is a frozen-food distributor with 10 warehouses across the country. Ivan Tory, one of the warehouse
managers, wants to make sure that the inventory policies used by the warehouse are minimizing inventory while still maintaining quick
delivery to ACold's customers. Because the warehouse carries hundreds of different products, Ivan decided to study one. He picked
Caruso's Frozen Pizza (CFP). Demand for CFPs averages 390 per day with a standard deviation of 150. Because ACold orders at least
one truck from its supplier each day, ACold can essentially order any quantity of CFP it wants each day. In fact, ACold's computer
system is designed to implement an order-up-to policy for each product. Ivan notes that any order for CFPs arrives five days after the
order.
a. Suppose an order-up-to level of 2,460 is used. What is the expected on-hand inventory?
Note: Use Table 14.1 and round to nearest integer.
Expected on-hand inventory
b. Suppose an order-up-to level of 2,508 is used. What is the expected on-order inventory?
Note: Round your answer to the nearest integer.
Expected on-hand inventory
c. Suppose an order-up-to level of 1,920 is used. What is the in-stock probability?
Note: Use Table 14.1. Round your answer to 1 decimal.
In-stock probability
d. Suppose ACold wants a 0.94 in-stock probability. What should the order-up-to level be?
Note: Use Table 14.1. Round your answer to the nearest integer.
Order-up-to level
Z F(Z) I(Z)
-4.00.00000.0000
-3.90.00000.0000
-3.80.00010.0000
-3.70.00010.0000
-3.60.00020.0000
-3.50.00020.0001
-3.40.00030.0001
-3.30.00050.0001
-3.20.00070.0002
-3.10.00100.0003
-3.00.00130.0004
-2.90.00190.0005
-2.80.00260.0008
-2.70.00350.0011
-2.60.00470.0015
-2.50.00620.0020
-2.40.00820.0027
-2.30.01070.0037
-2.20.01390.0049
-2.10.01790.0065
-2.00.02280.0085
-1.90.02870.0111
-1.80.03590.0143
-1.70.04460.0183
-1.60.05480.0232
-1.50.06680.0293
-1.40.08080.0367
-1.30.09680.0455
-1.20.11510.0561
-1.10.13570.0686
-1.00.15870.0833
-0.90.18410.1004
-0.80.21190.1202
-0.70.24200.1429
-0.60.27430.1687
-0.50.30850.1978
-0.40.34460.2304
-0.30.38210.2668
-0.20.42070.3069
-0.10.46020.3509
0.00.50000.3989
0.10.53980.4509
0.20.57930.5069
0.30.61790.5668
0.40.65540.6304
0.50.69150.6978
0.60.72570.7687
0.70.75800.8429
0.80.78810.9202
0.90.81591.0004
1.00.84131.0833
1.10.86431.1686
1.20.88491.2561
1.30.90321.3455
1.40.91921.4367
1.50.93321.5293
1.60.94521.6232
1.70.95541.7183
1.80.96411.8143
1.90.97131.9111
2.00.97722.0085
2.10.98212.1065
2.20.98612.2049
2.30.98932.3037
2.40.99182.4027
2.50.99382.5020
2.60.99532.6015
2.70.99652.7011
2.80.99742.8008
2.90.99812.9005
3.00.99873.0004
3.10.99903.1003
3.20.99933.2002
3.30.99953.3001
3.40.99973.4001
3.50.99983.5001
3.60.99983.6000
3.70.99993.7000
3.80.99993.8000
3.91.00003.9000
4.0

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