A health and nutrition store stocks a multivitamin with an annual demand of 1,000 bottles has Coprobability distribution with μ = 25 and σ = 5.(a) What is the recommended order quantity? (Round your answer to the nearest integer.)=$23.50 and C = $9. The demand exhibits some variability such that the lead-time demand follows a normal(b) What are the reorder point and safety stock if the store desires at most a 4% probability of stock-out on any given order cycle? (Round your answers to the nearest integer.)reorder pointsafety stock(c) If a manager sets the reorder point at 30, what is the probability of a stock-out on any given order cycle? (Round your answer to four decimal places.)How many times would you expect a stock-out during the year if this reorder point were used? (Round your answer to the nearest integer.)

Co: Cost per orderCh: Holding cost per unit per yearμ: Average lead-time demandσ: Standard deviation…

Answered: A health and nutrition store stocks a…

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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= = +E v No Spacing Normal Aav Replace Heading 1 Reuse Dictate Editor Files Paragraph Styles Editing Reuse Files Voice Editor Item SKU A3378 has a demand that is normally distributed during the lead time, with a mean of 360 units and standard deviation 9999 of 12. If Hinsdale cannot have stockouts in more than 10% of the time in any order, how much safety stock should be maintained and at what reorder point? 1. SKU F5402: daily demand is normally distributed with a mean of 16, standard deviation of 4, lead time is 4 days, and must operate at a 95% service level. 2. SKU B7319: daily demand is constant at 24 units per day, lead time is normally with a mean of 6 days and standard deviation of 2 days, and must operate at a 95% service level. 3. SKU F9004: daily demand is normally distributed with a mean of 21 units and a standard deviation of 3 days. The lead time is also normally distributed with a mean of 4 days, standard deviation of 2 days, and a service level of 90% is required. Text…
Cynthia Knott's oyster bar buys fresh Louisiana oystersfor $5 per pound and sells them for $9 per pound. Any oysters notsold that day are sold to her cousin, who has a nearby grocery store,for $2 per pound. Cynthia believes that demand fo llows the normaldistribution, with a mean of I 00 pounds and a standard deviation of15 pounds. How many pounds should she order each day?
You are the owner of Hotspices.com, an online retailer of hip, exotic, and hard-to-find spices. Consider your inventory of saffron, a spice (generally) worth more by weight than gold. You order saffron from an overseas supplier with a shipping lead time of four weeks and you order weekly. Average weekly demand is normally distributed with a mean of 60 ounces and a standard deviation of 20 ounces. What is its expected on-order inventory? (round up to the nearest integer)
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13 Pam’s demand for hats is normally distributed with mean 500 and standard deviation 100. She sells her hats for $50 each and buys hats for $10 each, and anything she can't sell by the end of the year, the wholesaler will buy for $5 each. How many hats should she order for next year to maximize profit?
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Bakery A sells bread for $2 per loaf that costs $0.50 per loaf to make. Bakery A gives an 80% discount for its bread at the end of the day. Demand for the bread is normally distributed with a mean of 300 and a standard deviation of 30. What order quantity maximizes expected profit for Bakery A? (use the normal distribution table posted on Canvas and round up to the nearest integer)

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