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 AColds customers. Because the warehouse carries hundreds of different products, Ivan decided to study one. He picked Carusos Frozen Pizza (CFP). Demand for CFPs averages 387 per day with a standard deviation of 156. 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, AColds 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.
1. Suppose an order-up-to level of 2,412 is used. What is the expected on-hand inventory?
Note: Use Table 14.1 and round to nearest integer.
2. Suppose an order-up-to level of 1,933 is used. What is the in-stock probability?
Note: Use Table 14.1. Round your answer to 1 decimal.
Table 14.1 :
The Distribution Function, F(z), and the Inventory I(Z), for the Standard Normal Distribution Function, show below:
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.

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