Use Table 14.1. You are the owner of Hotspices.com, an online retailer of hip, exotic, and...

Transcribed Image Text:

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 three weeks and you order weekly. Average weekly demand is normally distributed with a mean of 41 ounces and a standard deviation of 34 ounces. a. Suppose it uses an order-up-to level of 304 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. Expected on-hand inventory b. Suppose it uses an order-up-to level of 225 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 380 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. In-stock probability d. Suppose it wants a 0.98 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. Order-up-to level 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 three weeks and you order weekly. Average weekly demand is normally distributed with a mean of 41 ounces and a standard deviation of 34 ounces. a. Suppose it uses an order-up-to level of 304 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. Expected on-hand inventory b. Suppose it uses an order-up-to level of 225 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 380 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. In-stock probability d. Suppose it wants a 0.98 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. Order-up-to level