Question: You may need to use the appropriate technology to answer this question. A health and nutrition store stocks a multivitamin with an annual demand of
You may need to use the appropriate technology to answer this question.
A health and nutrition store stocks a multivitamin with an annual demand of bottles has
Co $
and
Ch $
The demand exhibits some variability such that the leadtime demand follows a normal probability distribution with
and
a
What is the recommended order quantity? Round your answer to the nearest integer.
b
What are the reorder point and safety stock if the store desires at most a probability of stockout on any given order cycle? Round your answers to the nearest integer.
reorder point
safety stock
c
If a manager sets the reorder point at what is the probability of a stockout on any given order cycle? Round your answer to four decimal places.
How many times would you expect a stockout during the year if this reorder point were used? Round your answer to the nearest integer.
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