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kykrilka [37]
3 years ago
5

Suppose the lead time is 3 operating days, and that the superstore wishes to maintain instock probability of 90%. The demand in

each day is normal distributed with standard deviation 10, and the demands cross 3 days are independent. What is the re-order point? The z-score for 0.9 is 1.28. (
Business
1 answer:
AveGali [126]3 years ago
5 0

Answer:

the  re-order point is 97.17

Explanation:

The computation of the re-order point is given below:

Re-order point is

= (Daily demand × Lead time) + (Z × Standard deviation × Sqrt(Lead time)

= (25 × 3) + (1.28 × 10 × Sqrt(3))

= 97.17

hence, the  re-order point is 97.17

The same is to be considered and relevant too

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Answer: 41.90%

Explanation:

First calculate the risk free rate:

Required return = risk free rate + beta * (Market return - risk free rate)

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28.95% = rf + 33.3% - 1.85rf

28.95% = -0.85rf + 33.3%

0.85rf = 33.3% - 28.95%

rf = 4.35%/0.85

rf = 5.12%

New required return;

Required return = risk free rate + beta * (Market return - risk free rate)

= 5.12% + 1.85 * (25% - 5.12%)

= 41.90%

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