can you help me figure out the answer to a. Problem 11-19The annual demand for a product is 15,600 units. The weekly demand is 300 units with a standard deviation of 90 units. The costto place an order is $31.20, and the time from ordering to receipt is four weeks. The annual inventory carrying cost is $0.10 perunit.a. Find the reorder point necessary to provide a 98 percent service probability. (Use Excel's NORMSINV() function to find the zvalue. Do not round intermediate calculations. Round z value to 2 decimal places and final answer to the nearest wholenumber.)Reorder point7603* unitsb. Suppose the production manager is asked to reduce the safety stock of this item by 50 percent. If she does so, what will thenew service probability be? (Use Excel's NORMSDIST() function to find the correct probability for your computed Z-value.Round "z" value to 2 decimal places and final answer to 1 decimal place.)Service probability84.6%

Following formula can be used to calculate the re-order point:

Answered: a. Find the reorder point necessary to…

Business

Accounting

a. Find the reorder point necessary to provide a 98 percent service probability.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Concept explainers

Market Efficiency

Market efficiency refers to the market's ability to provide investors with all available information about investment options for buying and selling securities. Market efficiency reflects the true value of securities without undervaluing or overvaluing them. When the quality and quantity of information increase, the market becomes more efficient, allowing it to reduce arbitrage and obtain higher market returns from investment. In a well-functioning market, everyone receives all information completely and immediately at no cost. It opens up a plethora of opportunities for investors to access various investment options.

Question

can you help me figure out the answer to a.

Problem 11-19
The annual demand for a product is 15,600 units. The weekly demand is 300 units with a standard deviation of 90 units. The cost
to place an order is $31.20, and the time from ordering to receipt is four weeks. The annual inventory carrying cost is $0.10 per
unit.
a. Find the reorder point necessary to provide a 98 percent service probability. (Use Excel's NORMSINV() function to find the z
value. Do not round intermediate calculations. Round z value to 2 decimal places and final answer to the nearest whole
number.)
Reorder point
7603
* units
b. Suppose the production manager is asked to reduce the safety stock of this item by 50 percent. If she does so, what will the
new service probability be? (Use Excel's NORMSDIST() function to find the correct probability for your computed Z-value.
Round "z" value to 2 decimal places and final answer to 1 decimal place.)
Service probability
84.6
%

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