Lieutenant Commander Data is planning to make his monthly (every 30 days) trek to Gamma Hydra City to pick up a supply of isolineal chips. The trip will take Data about three days. Before he leaves, he calls in the order to the GHC Supply Store. He uses chips at an average rate of twelve per day (seven days per week) with a standard deviation of demand of two per day. He needs a 99 percent service probability. a. If he currently has 20 chips in inventory, how many should he order? (Use Excel's NORM.S.INV() function to find the z value. Round z value to 2 decimal places and final answer to the nearest whole number.) Number of chips b. What is the most he will ever have to order? (Use Excel's NORM.S.INV() function to find the z value. Round z value to 2 decimal places and final answer to the nearest whole number.) Maximum order quantity
Lieutenant Commander Data is planning to make his monthly (every 30 days) trek to Gamma Hydra City to pick up a supply of isolineal chips. The trip will take Data about three days. Before he leaves, he calls in the order to the GHC Supply Store. He uses chips at an average rate of twelve per day (seven days per week) with a standard deviation of demand of two per day. He needs a 99 percent service probability. a. If he currently has 20 chips in inventory, how many should he order? (Use Excel's NORM.S.INV() function to find the z value. Round z value to 2 decimal places and final answer to the nearest whole number.) Number of chips b. What is the most he will ever have to order? (Use Excel's NORM.S.INV() function to find the z value. Round z value to 2 decimal places and final answer to the nearest whole number.) Maximum order quantity
Practical Management Science
6th Edition
ISBN:9781337406659
Author:WINSTON, Wayne L.
Publisher:WINSTON, Wayne L.
Chapter2: Introduction To Spreadsheet Modeling
Section: Chapter Questions
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
Transcribed Image Text:Lieutenant Commander Data is planning to make his monthly (every 30 days) trek to Gamma Hydra City to pick up a supply of isolinear
chips. The trip will take Data about three days. Before he leaves, he calls in the order to the GHC Supply Store. He uses chips at an
average rate of twelve per day (seven days per week) with a standard deviation of demand of two per day. He needs a 99 percent
service probability.
a. If he currently has 20 chips in inventory, how many should he order? (Use Excel's NORM.S.INV() function to find the z value.
Round z value to 2 decimal places and final answer to the nearest whole number.)
Number of chips
b. What is the most he will ever have to order? (Use Excel's NORM.S.INV() function to find the z value. Round z value to 2 decimal
places and final answer to the nearest whole number.)
Maximum order quantity
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