Weekly demand for area rugs at a Pottery Barn distribution center (DC) is normally distributed with...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
Weekly demand for area rugs at a Pottery Barn distribution center (DC) is normally distributed with a mean of 79 units/day and standard deviation of 26 units/day. Pottery Barn orders rugs at a unit cost of $253. The annual cost of carrying inventory at the store is 44% of the purchase cost per unit per year. It takes 27 days to receive a delivery. The store reviews its inventory continuously. Assume 52 weeks/year, 7 days/week and 364 days/year. Compute the annual holding cost of the safety stock (in $) needed to maintain a cycle service level of 98%. Carry your calculations to at least 3 decimal places. Round your answer to the nearest tenth of a dollar (one decimal place). A table of z-values is provided for your reference. Service Level z value 0.9 1.282 0.91 1.341 0.92 1.405 0.93 1.476 0.94 1.555 0.95 1.645 0.96 1.751 0.97 1.881 0.98 2.054 0.99 2.326 Weekly demand for area rugs at a Pottery Barn distribution center (DC) is normally distributed with a mean of 79 units/day and standard deviation of 26 units/day. Pottery Barn orders rugs at a unit cost of $253. The annual cost of carrying inventory at the store is 44% of the purchase cost per unit per year. It takes 27 days to receive a delivery. The store reviews its inventory continuously. Assume 52 weeks/year, 7 days/week and 364 days/year. Compute the annual holding cost of the safety stock (in $) needed to maintain a cycle service level of 98%. Carry your calculations to at least 3 decimal places. Round your answer to the nearest tenth of a dollar (one decimal place). A table of z-values is provided for your reference. Service Level z value 0.9 1.282 0.91 1.341 0.92 1.405 0.93 1.476 0.94 1.555 0.95 1.645 0.96 1.751 0.97 1.881 0.98 2.054 0.99 2.326
Expert Answer:
Posted Date:
Students also viewed these general management questions
-
Examine existing HRM practices in your company or one that you know about. Which of them are the product of your countrys legal, economic, political or social institutions? Provide explanations for...
-
Are there private property rights within a firm? Who owns what? What is not owned? Can `trade and exchange occur within the firm without the existence of private property rights?
-
Hasbro and Mattel, Inc., are the two largest toy companies in North America. Condensed liabilities and stockholders' equity from a recent balance sheet are shown for each company as follows (in...
-
Why must a performance index often be described by a probability distribution rather than a single point estimate?
-
1. Give examples of needs, wants, and demands of Chick-fil-A customers, differentiating these three concepts. 2. Describe Chick-fil-A in terms of the value it provides customers. How does Chick-fil-A...
-
1. Assuming that xy=x+y+1 and xy = xy +x+y are two binary operations defined for all x, y ER, i) prove that both and are commutative; ii) prove that both and are associative; iii) prove that is...
-
If link AB of the four-bar linkage has a constant counterclockwise angular velocity of 41 rad/s during an interval which includes the instant represented, determine the angular acceleration of AO...
-
Provide 2 different ways of representing this problem and its solution that might be used to 'convince' a student of the solution and its reasonableness. Think about the different ways that fractions...
-
Determine the total dollar amount for each classification; asset, liability, stockholder's equity. Suppose the following items were taken from the balance sheet of Nike, Inc. (All dollars are in...
-
14. (3 points) Write a program that ask the user for 1. their first name and 2. their last name, Enter first name: Matt Enter last name: Priem Hello Matt Priem! and then outputs a greeting similar to...
-
Part One: Identify the following Technical Specifications (Tech Specs) of the Chicago Pile number 1 (CP-1) reactor: 1. Thermal power in Watts(thermal), Wth. 2. Fuel material 3. Moderator material 4....
-
As an engineering challenge, a group of high schoolers are trying to create an apparatus to safely catch a dropped egg. A USDA-rated large chicken egg with a mass of 57 grams is to be dropped from...
-
4. Prove using PMI that (4n-3) = n (2n-1) %3D 5. Let a, = 1 and az = 1 and define an+2 %3D An+1 an Prove for all natural numbersn that 1 < a, 2. 6. Let the f, be the Fibonacci numbers. Prove that for...
-
Suppose that a company has 10.000 outstanding shares in the beginning of the year. On April 1st, the company increases its shares by 6.000. On July 1st, the company increases its shares again, but...
Study smarter with the SolutionInn App