Homework Help is Here – Start Your Trial Now!
Business
Operations Management
Based on available information, lead time demand for PC jump drives averages 48 units (normally distributed), with a standard deviation of 5 drives. Management wants a 98% service level. Refer to the standard normal table for z-values. a) What value of Z should be applied? 2.06 b) How many drives should be carried as safety stock? your response to the nearest whole number). units (round

Based on available information, lead time demand for PC jump drives averages 48 units (normally distributed), with a standard deviation of 5 drives. Management wants a 98% service level. Refer to the standard normal table for z-values. a) What value of Z should be applied? 2.06 b) How many drives should be carried as safety stock? your response to the nearest whole number). units (round

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...
See similar textbooks
icon
Related questions
Question
### Z-Table The table provided is a Z-Table, which is used in statistics to determine the probability that a statistic is observed below, above, or between values on the standard normal distribution. The table shows different Z-values alongside their corresponding cumulative probabilities (Pr(Z)). #### Table Structure: - **Columns:** - **Z**: This column represents the Z-scores, which are statistical measures that describe a value's position relative to the mean of a group of values, measured in terms of standard deviations. - **Pr(Z)**: This column lists the cumulative probability in percentage form associated with each Z-score. #### Detailed Table Data: - For a Z-score of 0.38, the cumulative probability is 65%. - For a Z-score of 0.50, the cumulative probability is 69%. - For a Z-score of 0.67, the cumulative probability is 75%. - For a Z-score of 0.84, the cumulative probability is 80%. - For a Z-score of 1.04, the cumulative probability is 85%. - For a Z-score of 1.28, the cumulative probability is 90%. - For a Z-score of 1.41, the cumulative probability is 92%. - For a Z-score of 1.56, the cumulative probability is 94%. - For a Z-score of 1.65, the cumulative probability is 95%. - For a Z-score of 1.75, the cumulative probability is 96%. - For a Z-score of 2.06, the cumulative probability is 98%. - For a Z-score of 2.33, the cumulative probability is 99%. This table aids in understanding how data points relate to the normal distribution, facilitating statistical analysis and hypothesis testing.
Transcribed Image Text:### Z-Table The table provided is a Z-Table, which is used in statistics to determine the probability that a statistic is observed below, above, or between values on the standard normal distribution. The table shows different Z-values alongside their corresponding cumulative probabilities (Pr(Z)). #### Table Structure: - **Columns:** - **Z**: This column represents the Z-scores, which are statistical measures that describe a value's position relative to the mean of a group of values, measured in terms of standard deviations. - **Pr(Z)**: This column lists the cumulative probability in percentage form associated with each Z-score. #### Detailed Table Data: - For a Z-score of 0.38, the cumulative probability is 65%. - For a Z-score of 0.50, the cumulative probability is 69%. - For a Z-score of 0.67, the cumulative probability is 75%. - For a Z-score of 0.84, the cumulative probability is 80%. - For a Z-score of 1.04, the cumulative probability is 85%. - For a Z-score of 1.28, the cumulative probability is 90%. - For a Z-score of 1.41, the cumulative probability is 92%. - For a Z-score of 1.56, the cumulative probability is 94%. - For a Z-score of 1.65, the cumulative probability is 95%. - For a Z-score of 1.75, the cumulative probability is 96%. - For a Z-score of 2.06, the cumulative probability is 98%. - For a Z-score of 2.33, the cumulative probability is 99%. This table aids in understanding how data points relate to the normal distribution, facilitating statistical analysis and hypothesis testing.
Based on available information, lead time demand for PC jump drives averages 48 units (normally distributed), with a standard deviation of 5 drives. Management wants a 98% service level. Refer to the standard normal table for z-values. a) What value of Z should be applied? 2.06 b) How many drives should be carried as safety stock? ___ units (round your response to the nearest whole number).
Transcribed Image Text:Based on available information, lead time demand for PC jump drives averages 48 units (normally distributed), with a standard deviation of 5 drives. Management wants a 98% service level. Refer to the standard normal table for z-values. a) What value of Z should be applied? 2.06 b) How many drives should be carried as safety stock? ___ units (round your response to the nearest whole number).
Expert Solution
trending now

Trending now

This is a popular solution!

steps

Step by step

Solved in 3 steps with 2 images

SEE SOLUTIONCheck out a sample Q&A here
Blurred answer
Recommended textbooks for you
Practical Management Science
Practical Management Science
Operations Management
ISBN:
9781337406659
Author:
WINSTON, Wayne L.
Publisher:
Cengage,
Operations Management
Operations Management
Operations Management
ISBN:
9781259667473
Author:
William J Stevenson
Publisher:
McGraw-Hill Education
Operations and Supply Chain Management (Mcgraw-hi…
Operations and Supply Chain Management (Mcgraw-hi…
Operations Management
ISBN:
9781259666100
Author:
F. Robert Jacobs, Richard B Chase
Publisher:
McGraw-Hill Education
Business in Action
Business in Action
Operations Management
ISBN:
9780135198100
Author:
BOVEE
Publisher:
PEARSON CO
Purchasing and Supply Chain Management
Purchasing and Supply Chain Management
Operations Management
ISBN:
9781285869681
Author:
Robert M. Monczka, Robert B. Handfield, Larry C. Giunipero, James L. Patterson
Publisher:
Cengage Learning
Production and Operations Analysis, Seventh Editi…
Production and Operations Analysis, Seventh Editi…
Operations Management
ISBN:
9781478623069
Author:
Steven Nahmias, Tava Lennon Olsen
Publisher:
Waveland Press, Inc.
SEE MORE TEXTBOOKS