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 policles used by the warehouse are minimizing inventory while still maintalning quick dellvery to ACold's customers. Because the warehouse carrles hundreds of different products, lvan decided to study one. He picked Caruso's Frozen Plzza CFP Demand for CFPs averages per day with a standard devatlon of Because ACold orders at least one truck from its supplier each day, ACold can essentlally order any quantity of CFP it wants each day. In fact, ACold's 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.
a Suppose an orderupto level of is used. What is the expected onhand Inventory?
Note: Use Table and round to nearest integer.
b Suppose an orderupto level of is used. What is the expected onorder inventory? Note: Round your answer to the nearest integer.
Expected onhand inventory
c Suppose an orderupto level of is used. What is the instock probability? Note: Use Table Round your answer to decimal.
times
d Suppose ACold wants a instock probability. What should the orderupto level be Note: Use Table Round your answer to the nearest integer.
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