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e order quantity to the supplier is fixed at 5,00 holding cost is 25% per year. es the approximate service level (round to two

e order quantity to the supplier is fixed at 5,00 holding cost is 25% per year. es the approximate service level (round to two

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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**Question #3** Same problem statement: Weekly demand for DVDs at a retailer is normally distributed with a mean of 1,000 boxes and a standard deviation of 150. Currently, the store places orders to the supplier every 4 weeks. Replenishment lead time is 4 weeks, fixed order cost per order is $50.00, each box costs the retailer $10, and the inventory holding cost is 25% per year. With a safety stock of 300 boxes, what is the approximate service level (round to two decimal places)? **Numeric Response:** 8413
Transcribed Image Text:**Question #3** Same problem statement: Weekly demand for DVDs at a retailer is normally distributed with a mean of 1,000 boxes and a standard deviation of 150. Currently, the store places orders to the supplier every 4 weeks. Replenishment lead time is 4 weeks, fixed order cost per order is $50.00, each box costs the retailer $10, and the inventory holding cost is 25% per year. With a safety stock of 300 boxes, what is the approximate service level (round to two decimal places)? **Numeric Response:** 8413
**Question #4** **Sample Problem Statement:** Weekly demand for DVD rental boxes at a retailer is normally distributed with a mean of 1,000 boxes and a standard deviation of 150. Currently, the store places orders to the supplier. Replenishment lead time is 4 weeks. Fixed order cost per order is $500, and each box costs the retailer $10, and the inventory holding cost is 25% per year. Given the problem parameters, what is the optimal order quantity the retailer should order? **Numeric Response:** 2040
Transcribed Image Text:**Question #4** **Sample Problem Statement:** Weekly demand for DVD rental boxes at a retailer is normally distributed with a mean of 1,000 boxes and a standard deviation of 150. Currently, the store places orders to the supplier. Replenishment lead time is 4 weeks. Fixed order cost per order is $500, and each box costs the retailer $10, and the inventory holding cost is 25% per year. Given the problem parameters, what is the optimal order quantity the retailer should order? **Numeric Response:** 2040
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