Ned's Natural Foods sells unshelled peanuts by the pound. Historically, Ned has observed thatdaily demand is normally distributed with a mean of 80 pounds and a standard deviation of26 pounds. Lead time also appears normally distributed with a mean of 8 days and a standarddeviation of o1. Suppose one year has 365 days. The ordering cost is $600, and the inventorycarrying cost is $1.2/pound/year.1.Suppose oL =1 day and Ned aims to limit the stockout risk during lead timeto 3.5 percent. At what level of inventory should the manager place an order?2.Suppose Ned uses a reorder point of 900 pounds and the service level is 88.1percent. Then what is the standard deviation of lead time (oL)?

Answered: Image /qna-images/answer/3f907907-60c0-4fd3-a597-547504c4e7a7.jpg

Answered: Ned's Natural Foods sells unshelled…

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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Suppose that replacement times for washing machines are normally distributed with a mean of μ= 8.7 years and a standard deviation of σ= 1.6 years. Find and graph P25 the replacement time that separates the bottom 25% from the top 75%.
Suppose that the TSH (Thyroid Stimulating Hormone) levels among healthy individuals are normally distributed with a mean of 3.3 unitsmL. Suppose also that exactly 95% of healthy individuals have TSH levels below 6.2 unitsmL. Find the standard deviation of the distribution of TSH levels of healthy individuals. Carry your intermediate computations to at least four decimal places. Round your answer to at least two decimal places.
Suppose the mean monthly return on a T-Bill is 0.5% with a standard deviation of 0.58%. Sup-pose we have another investment Y with a 1.5% mean monthly return and standard deviationof 6%. Which of the two investments o ers less risk in terms of investment.
A Scenario: Jimmy store sells large tins of Tom Tucker Coffee. The deli uses a periodic review system. Inventory is checked every 10 days which more orders are needed for tins. Order lead time is 3 days. Average demand is 7 tins, so average demand during the reorder period and order lead time (13) is 91 tins. Standard deviation of demand during the same 13 day period is 17 tins.1. Calculate the restocking level ( Assume the desired level is 90%)2. Suppose standard deviation of demand during the 13-day period drops to 4 tins. What happened to restocking level? Explain why?3. Draw a saw-tooth diagram. Beginning inventory level is equal to restocking level and the demand rate is a constant 7 tins per day. What is the safety stock level? What is the average inventory level?
A 7. The analyst in the Dorben Company made 10 independent time studies in the hand paint- spraying section of the finishing department. The product line under study revealed a direct relation between spraying time and product surface area. The following data were collected. Study No. 1 2 3 4 5 6 8 9 10 Surface Area 170 12 150 41 130 50 70 105 95 (sq. inches) Standard Time (hours) 0.32 0.11 0.31 0.14 0.27 0.18 7 120 0.24 0.23 0.25 (7a) Compute the slope and intercept constant using regression line equations. (7b) What is the correlation coefficient? (7c) How much spray time would you allow for a new part with a surface area of 250 sq. inches? 0.22
#6 6.2
Exercise 6. Regression Fallacy. Historically, scores on the two midterms had a correlation of 0.48. Suppose that Jeri scored 2.1 standard deviations below the mean on the first midterm. (a) How many standard deviations [above or below?] the mean would you predict for her second midterm?
Determine if the following statements are true or false. a. Jane took a sample of n = 100 observations from a population with mean and standard deviation. Mike also took a sample of n = 200 observations from the same population. Then, Mike’s sample mean will be closer to the true population mean than Jane’s sample. b. Jane took a sample of n = 100 observations from a population with mean and standard deviation. Mike also took a sample of n = 200 observations from a population with mean and standard deviation 2. Then, the sample mean from Mike’s sample is more likely to be close to the true mean than the sample mean from Jane’s sample. That is, the probability that X is between 90% and 110% of mean is higher for Mike’s sample than for Jane’s sample.
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A normally distributed
C. Atlantic Video is planning to add the new Marvel movie to their collection, and they predict that this will double their demand (i.e. new arrival rate is 60 customers every hour) and halve the standard deviation of the inter-arrival times. However, they want to keep the average waiting time of customers in line the same as before. Assume that the coefficient of variation for the check-out times does not change. Please answer the following questions. 1) Does the employee need to work twice as fast? If not, calculate the new service rate. 2) What is the average number of customers in the store?
Answer d.

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