Question

A warehouse distributor of carpet keeps 6,000 yards of deluxe shag carpet in stock during a month. The average demand for carpet from the stores that purchase from the distributor is 4,500 yards per month, with a standard deviation of 900 yards. What is the probability that a customer’s order will not be met during a month? (This situation is referred to as a stockout.)

Answer 1

Answer:

The probability that a customer’s order will not be met during a month is 1.67.

Step-by-step explanation:

Given : A warehouse distributor of carpet keeps 6,000 yards of deluxe shag carpet in stock during a month. The average demand for carpet from the stores that purchase from the distributor is 4,500 yards per month, with a standard deviation of 900 yards.

To find : What is the probability that a customer’s order will not be met during a month?

Solution :

Average Mean $\mu=4500$

Sample Mean $x=6000$

Standard deviation $\sigma=900$

The formula is given by,

$Z=\frac{x-\mu}{\sigma}$

Substitute the value in the formula,

$Z=\frac{6000-4500}{900}$

$Z=\frac{1500}{900}$

$Z=1.67$

The probability that a customer’s order will not be met during a month is 1.67.