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 You are the owner of Hotspices.com, an online retailer of hip, exotic, and hardtofind 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 ounces and a standard deviation of ounces.
a Suppose it uses an orderupto level of ounces. What is its expected onhand inventory?
Note: Use Table Round your calculated mathbfz value to the nearest increment. Round your answer to the nearest integer.
Expected onhand inventory
b Suppose it uses an orderupto level of ounces. What is its expected onorder inventory?
Note: Round your answer to the nearest integer.
Expected onorder inventory
c Suppose it uses an orderupto level of ounces. What is its instock probability?
Note: Use Table Round your calculated z value to the nearest increment. Round your answer to decimal places.
Instock probability
d Suppose it wants a instock probability. What should its orderupto level be
Note: Use Table Choose the z value with a cumulative probability AT LEAST as high as the required instock probability eg if instock probability is use z instead of z Round your answer to the nearest integer.
Orderupto level
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