Question: Use Table 1 4 . 1 . You are the owner of Hotspices.com, an online retailer of hip, exotic, and hard - to - find

Use Table 14.1. You are the owner of Hotspices.com, an online retailer of hip, exotic, and hard-to-find spices. Consider your Inventory of saffron, a spice (generally) worth more by weight than gold. You order saffron from an overseas supplier with a shipping lead time of four weeks and you order weekly. Average weekly demand is normally distributed with a mean of 40 ounces and a standard deviation of 30 ounces.
a. Suppose It uses an order-up-to level of 301 ounces. What is its expected on-hand inventory?
Note: Use Table 14.1. Round your calculated z value to the nearest 0.1 increment. Round your answer to the nearest integer.
\begin{tabular}{|l|r|}
\hline Expected on-hand inventory & \(141*0\)\\
\hline
\end{tabular}
b. Suppose It uses an order-up-to level of 250 ounces. What is its expected on-order Inventory? Note: Round your answer to the nearest integer.
Expected on-order inventory
c. Suppose it uses an order-up-to level of 368 ounces. What is its in-stock probability?
Note: Use Table 14.1. Round your calculated z value to the nearest 0.1 increment. Round your answer to 4 decimal places.
d. Suppose It wants a 0.96 in-stock probability. What should its order-up-to level be?
Note: Use Table 14.1. Choose the \( z \) value with a cumulative probability AT LEAST as high as the required in-stock probability (e.g. If in-stock probability is 0.92, use \( z=1.5\) instead of \( z=1.4\)). Round your answer to the nearest integer.
 Use Table 14.1. You are the owner of Hotspices.com, an online

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related General Management Questions!