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Hatshy [7]
3 years ago
7

The College Bookstore sells a unique calculator to college students. The demand for this calculator has a normal distribution wi

th an average daily demand of 20 units and a standard deviation of 4 units per day. The lead time for this calculator is 9 days. Compute the statistical reorder point that results in a 95 percent in-stock probability. Choose the closest answer. quiz;et
Business
1 answer:
ale4655 [162]3 years ago
3 0

Answer:

A) 200 units

Explanation:

mean daily demand = 20 calculators

standard deviation = 4 calculators

lead time = 9 days

z-critical value (for 95% in-stock probability) = 1.96

normal consumption during lead-time:

= mean demand × lead time

= 20 × 9

= 180 calculators

safety stock = z × SD × √L

                    = 1.96 × 4 × √9

                    = 1.96 × 4 × 3

                    = 23.52 calculators

reorder point = normal consumption + safety stock

                       = 180 + 23.52

                       = 203.52 calculators

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fenix001 [56]

Answer:

Best reorder size = 216

Reorder point = 35

Explanation:

Required:

Using the above information, find the best order size and the reorder point.

To find the best order size, EOQ, use the formula:

EOQ = \sqrt{\frac{2DS}{H}}

= \sqrt{\frac{2*3500*50}{0.25*30}}

= \sqrt{\frac{350000}{7.5}}

= 216.02

Best reorder size is 216 mufflers

To find the reorder point, use the formula:

R = d' L + z \sigma_L

Where d' = average daily demand

L = lead time in days

z = number of standard deviation from a specified probability

\sigma_L = standard deviation of usage in lead time

Daily demand, d'= \frac{3500}{300} = 12

12 mufflers

Since lead time is 2 working days, standard deviation of lead time \sigma_L = \sqrt{2} * 6 = 8.48

Therefore,

R = d' L + z \sigma_L

= (12 * 2) + (1.28 * 8.48)

= 24 + 10.9

= 34.9

Approximately 35

Reorder point is = 35 mufflers

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3 years ago
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Answer:

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Answer:

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Explanation:

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