Answer:
3 jars of the chemical should be ordered
Step-by-step explanation:
Given the data in the question;
Ol = 10 days
d = 16 ml
z = 1.65 at 95% service level
σ = 3.5 ml
Check of stock reviewed that 9 of 25-milliliter (ml) jars are on hand
so inventory in position = 9 × 25 = 225 ml
now,
since this is a fixed-order-internal system;
first we determine our Target inventory
Target inventory = 16 × ( 10 + 6) + 1.65√( 10 + 6 ) × 3.5
Target inventory = 265 + 23.1
Target inventory = 288.1
so
Amount to order = Target inventory - inventory in position
Amount to order = 288.1 - 225 = 63.1 ml
∴ number of jars to order will be;
⇒ 63.1 ml/ 25 ml = 2.5 { approximately 3 jars }
Therefore, 3 jars of the chemical should be ordered
