You may need to use the appropriate technology to answer this question. A health and nutrition...

 

Transcribed Image Text:

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 1,000 bottles has C, $24.50 and C = $9. The demand exhibits some variability such that the lead-time demand follows a normal probability distribution with = 25 and = 5. (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 6% probability of stock-out 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 30, what is the probability of a stock-out on any given order cycle? (Round your answer to four decimal places.) How many times would you expect a stock-out during the year if this reorder point were used? (Round your answer to the nearest integer.) Need Help? Read It 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 1,000 bottles has C, $24.50 and C = $9. The demand exhibits some variability such that the lead-time demand follows a normal probability distribution with = 25 and = 5. (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 6% probability of stock-out 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 30, what is the probability of a stock-out on any given order cycle? (Round your answer to four decimal places.) How many times would you expect a stock-out during the year if this reorder point were used? (Round your answer to the nearest integer.) Need Help? Read It