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 five days. Before he leaves, he calls in the order to the GHC Supply Store. He uses chips at an average rate of two per day (seven days per week) with a standard deviation of demand of one per day. He needs a 95 percent service probability. a. If he currently has 20 chips in inventory, how many should he order? b. What is the most he will ever have to order?
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 five days. Before he leaves, he calls in the order to the GHC Supply Store. He uses chips at an average rate of two per day (seven days per week) with a standard deviation of demand of one per day. He needs a 95 percent service probability. a. If he currently has 20 chips in inventory, how many should he order? b. What is the most he will ever have to order?
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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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 five days. Before he leaves, he calls in the order to the GHC Supply Store. He uses chips at an average rate of two per day (seven days per week) with a standard deviation of demand of one per day. He needs a 95 percent service probability.
a. If he currently has 20 chips in inventory, how many should he order?
b. What is the most he will ever have to order?
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