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A local merchandise store places order every 4 weeks. The weekly demand for a product it orders periodically has been observed to have followed the normal distribution with a mean of 50 units and standard deviation of 10 units. The lead time to receive the order once it is placed is 1 week. Lead time is assumed not having any uncertainty. The store would like to maintain a service level of 90 percent. Given there are 50 units already in stock what should be the order quantity?

A local merchandise store places order every 4 weeks. The weekly demand for a product it orders periodically has been observed to have followed the normal distribution with a mean of 50 units and standard deviation of 10 units. The lead time to receive the order once it is placed is 1 week. Lead time is assumed not having any uncertainty. The store would like to maintain a service level of 90 percent. Given there are 50 units already in stock what should be the order quantity?

Practical Management Science
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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A local merchandise store places order every 4 weeks. The weekly demand for a product it orders periodically has been observed to have followed the normal distribution with a mean of 50 units and standard deviation of 10 units. The lead time to receive the order once it is placed is 1 week. Lead time is assumed not having any uncertainty. The store would like to maintain a service level of 90 percent. Given there are 50 units already in stock what should be the order quantity? O a. 219 O b. 229 O c. 237 Od. 220 O e. None is correct
Transcribed Image Text:A local merchandise store places order every 4 weeks. The weekly demand for a product it orders periodically has been observed to have followed the normal distribution with a mean of 50 units and standard deviation of 10 units. The lead time to receive the order once it is placed is 1 week. Lead time is assumed not having any uncertainty. The store would like to maintain a service level of 90 percent. Given there are 50 units already in stock what should be the order quantity? O a. 219 O b. 229 O c. 237 Od. 220 O e. None is correct
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