Question: Weekly demand for a television is normally distributed with mean 5 5 and standard deviation 1 9 . The lead time from the plant to

Weekly demand for a television is normally distributed with mean 55 and standard deviation 19. The lead time from the plant to your store is 3 weeks and you order inventory replenishments weekly. You use the order-up-to model to control inventory.
1. Suppose the order-up-to level is S=250.
You are preparing to place an order and note that your inventory level is 111 and you have 78 televisions on order. How many televisions will you order? (Provide your answer as an integer.)
The following week, your inventory level is 189 and you have 64 televisions on order. How many televisions will you order? (Provide your answer as an integer.)
2. What order-up-to level would you choose if you want to achieve a 98.75% in-stock probability? (Provide your answer to two decimal places.)
3. Suppose the order-up-to level is S=220.
What is your expected on-hand inventory? (Provide your answer to two decimal places.)
What is your expected on-order inventory? (Provide your answer as an integer.)
1. Suppose SnowBirds wants to maximize expected profits from the sale of the snowboard.
What is the critical ratio Snowbirds would want to meet? (report your answer to 3 decimal places)
How many snowboards should they order from the manufacturer? (report your answer as an integer)
2. Suppose SnowBirds orders 4,200 snowboards.
What are the expected lost sales? (report your answer to 2 decimal places)
What are the expected sales? (report your answer to 2 decimal places)
What is the expected leftover inventory? (report your answer to 2 decimal places)
What is the expected profit? (report your answer to 2 decimal places)
3. Suppose SnowBirds orders 3,500 snowboards.
What are the expected lost sales? (report your answer to 2 decimal places)
What are the expected sales? (report your answer to 2 decimal places)
How many of these snowboards can SnowBirds expect to sell at the discount price. (report your answer to 2 decimal places)
4. How many snowboards should they order if they want to minimize their inventory while ensuring that the stockout probability is no greater than 1%?(report your answer as an integer)

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