Answer:
The correct answer to the following question will be "280 units".
Step-by-step explanation:
The given values are:
Mean = 200
Standard deviation = 30
Let's ask that the supplier needs to reach 99.9% of the standard of operation. To reach this quality of operation, she has to preserve an inventory of
Now,
⇒ 
On putting the values, we get
⇒ 
⇒ 
⇒ 
290 units would then accomplish a level of service of 99.9%.
Half unpurchased units can indeed be purchased at $30000 i.e. no failure. If he requests 300, there will be losses on 5 products that are unsold.
Hence, ordering 280 units seems to be preferable
→ 
8 and 10 can both be divided by 2. So, 8 ÷ 2 is 4 and 10 ÷ 2 is 5.
Hope this helps :)
See the attached image for the graph. Specifically figure 2 is the graph you want. You can leave the red points on the graph or decide to erase them (leave behind the blue line though).
To generate each of the red points, you'll plug in various x values to get corresponding y values.
For instance, plug in x = 0 and we get...
y = -|x-6| - 6
y = -|0-6| - 6
y = -|-6| - 6
y = -6 - 6
y = -12
So when x = 0, the y value is -12. The x and y value pair up to get (x,y) = (0,-12)
Another example: plug in x = 2
y = -|x-6| - 6
y = -|2-6| - 6
y = -|-4| - 6
y = -4 - 6
y = -10
So the point (2,-10) is on the graph
The idea is to generate as many points as possible so we get an idea of what this thing looks like.
Generate enough points, and you'll get what you see in Figure 1 (see attached image)
Then draw a line through all of the points. The more points you use, the more accurate the drawing. Doing that will generate the blue function curve you see in Figure 2 (also attached)
