Question: Weekly demand for a 3 - D printer retailer has a mean of 5 0 units. The supplier has a lead time of 2 1

Weekly demand for a 3-D printer retailer has a mean of 50 units. The supplier has a lead time of 21 days. T placing an order to the supplier each time is $8, and annual holding cost for one unit is 20 percent of the Co Each unit costs the retailer $208. Assume 52 weeks in a year.
Assume there is a weekly standard deviation in demand of 10 units (Chapter 11)-
If we have on average 45 units of on-hand inventory, what is our stock-out probability?
*The on-hand inventory in this question is independent from other questions*
TABLE 11.5 In-Stock Probabllities and Matching Safety Factors, z
In-Stock Probabllity Safety Factor, Z
Safety Factor, z In-Stock Probablity
0.9000
1.28
1.25
0.8944
0.9800
2.05
2.00
0.9773
0.9900
2.33
2.25
0.9878
0.9950
2.58
2.50
0.9938
0.9999
3.72
3.00
0.9987
2.27%
0.62%
2.00%
O 1.22%

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