Jasper sells 14,800 carvings a year. He has weekly demand of 285 carvings with a weekly standard deviation of 85. The cost forJasper to place an order to his supplier is $31.00, and the time from ordering to receipt is ten weeks. The annual inventory carryingcost is $0.10 per carving.a. What is the reorder point necessary to provide a 90 percent service level over the lead time? Round the z score to 2 decimal places(e.g. z=0.58) and your final answer to the nearest whole number.Reorder point3,194b. Suppose Jasper reduces the safety stock of this item by 55 percent. What is the new service level? Round the z score to 2 decimalplaces (e.g., z=4.82) and round your answer to the nearest 1 percent (e.g., if the answer is 13.17%, enter 13.2, not .132 or 13.2%).Service level71.9 %

Weekly Demand = d = 285 cravings Weekly Std. Deviation = σ = 85 Lead time = L = 10 weeks Service…

Answered: Jasper sells 14,800 carvings a year. He…

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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