Cost per tire Holding cost Demand $35 each 20 percent of tire cost per year 1,000 per year $20 per order 3 tires Ordering cost Standard deviation of daily demand Delivery lead time 4 days Because customers generally do not wait for tires but go elsewhere, you decide on a service probability of 98 percent. Assume the demand occurs 365 days per year. a. Determine the order quantity. (Round your answer to the nearest whole number.) Order quantity tires b. Determine the reorder point. (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| | tires
Cost per tire Holding cost Demand $35 each 20 percent of tire cost per year 1,000 per year $20 per order 3 tires Ordering cost Standard deviation of daily demand Delivery lead time 4 days Because customers generally do not wait for tires but go elsewhere, you decide on a service probability of 98 percent. Assume the demand occurs 365 days per year. a. Determine the order quantity. (Round your answer to the nearest whole number.) Order quantity tires b. Determine the reorder point. (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| | tires
MATLAB: An Introduction with Applications
6th Edition
ISBN:9781119256830
Author:Amos Gilat
Publisher:Amos Gilat
Chapter1: Starting With Matlab
Section: Chapter Questions
Problem 1P
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Contingency Table
A contingency table can be defined as the visual representation of the relationship between two or more categorical variables that can be evaluated and registered. It is a categorical version of the scatterplot, which is used to investigate the linear relationship between two variables. A contingency table is indeed a type of frequency distribution table that displays two variables at the same time.
Binomial Distribution
Binomial is an algebraic expression of the sum or the difference of two terms. Before knowing about binomial distribution, we must know about the binomial theorem.
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![**Inventory Management in the Automotive Section: A Case Study**
As the new head of the automotive section of Nichols Department Store, it is crucial to ensure accurate reorder quantities for various items. This exercise focuses on Michelin tires, specifically the XW size 185 × 14 BSW. To manage inventory effectively, a perpetual inventory system is utilized, and the following data has been collected:
- **Cost per tire:** $35 each
- **Holding cost:** 20% of tire cost per year
- **Demand:** 1,000 per year
- **Ordering cost:** $20 per order
- **Standard deviation of daily demand:** 3 tires
- **Delivery lead time:** 4 days
Given that customers often choose alternatives if tires are unavailable, a service probability of 98% is targeted. The demand is evenly distributed throughout the year, occurring 365 days annually.
**Tasks:**
a. **Determine the order quantity.**
*Instructions:* Round your answer to the nearest whole number.
- **Order quantity:** [__________] tires
b. **Determine the reorder point.**
*Instructions:* Use Excel's `NORMSINV()` function to find the z-value. Do not round intermediate calculations. Round the z-value to two decimal places and the final answer to the nearest whole number.
- **Reorder point:** [__________] tires](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fa3929d5b-0872-42ba-b021-55cb5b607a80%2F8286a684-0e2c-439c-aed9-45b91ff04afc%2Fysgy6r1r_processed.png&w=3840&q=75)
Transcribed Image Text:**Inventory Management in the Automotive Section: A Case Study**
As the new head of the automotive section of Nichols Department Store, it is crucial to ensure accurate reorder quantities for various items. This exercise focuses on Michelin tires, specifically the XW size 185 × 14 BSW. To manage inventory effectively, a perpetual inventory system is utilized, and the following data has been collected:
- **Cost per tire:** $35 each
- **Holding cost:** 20% of tire cost per year
- **Demand:** 1,000 per year
- **Ordering cost:** $20 per order
- **Standard deviation of daily demand:** 3 tires
- **Delivery lead time:** 4 days
Given that customers often choose alternatives if tires are unavailable, a service probability of 98% is targeted. The demand is evenly distributed throughout the year, occurring 365 days annually.
**Tasks:**
a. **Determine the order quantity.**
*Instructions:* Round your answer to the nearest whole number.
- **Order quantity:** [__________] tires
b. **Determine the reorder point.**
*Instructions:* Use Excel's `NORMSINV()` function to find the z-value. Do not round intermediate calculations. Round the z-value to two decimal places and the final answer to the nearest whole number.
- **Reorder point:** [__________] tires
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