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 ACold Incorporated is a frozenfood distributor with 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 per day with a standard deviation of 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 orderupto policy for each product. Ivan notes that any order for CFPs arrives five days after the order.
Suppose an orderupto level of is used. What is the expected onhand inventory?
Note: Use Table and round to nearest integer.
Suppose an orderupto level of is used. What is the instock probability?
Note: Use Table Round your answer to decimal.
Table :
The Distribution Function, Fz and the Inventory IZ for the Standard Normal Distribution Function, show below:
Z FZ IZ
