1) Weekly demand for a product is 300 units with a standard deviation of 35 units. The cost of placing anorder is $80, and the time from ordering to receipt is three weeks. The annual inventory carrying cost is$1 per unit. (Company operates for 52 weeks)a) How many units should the production manager order each time? (Round up your answer)b) What is the re-order point if the manager wants to provide a 97.5 percent service probability?(Roundup your answer)c) Suppose the production manager is told to reduce the safety stock of this item by 50 units. If this isdone, what will the new service probability be? What is the Z value, and what is the probability?

Given that, Weekly Demand = 300 units Standard Deviation = 35 units Ordering cost = 80 Lead Time = 3…

Answered: 1) Weekly demand for a product is 300…

Practical Management Science

6th Edition

ISBN:9781337406659

Author:WINSTON, Wayne L.

Publisher:WINSTON, Wayne L.

Chapter2: Introduction To Spreadsheet Modeling

Section: Chapter Questions

Problem 20P: Julie James is opening a lemonade stand. She believes the fixed cost per week of running the stand...

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