Same problem statement: Weekly demand for DVD-Rs at a retailer is normally distributed with a mean of 1,000 boxes and a standard deviation of 1 with a reorder point of 4,200 boxes. The order quantity to the supplier is fixed at 5,000 boxes. Replenishment lead time costs the retailer $10, and the inventory holding cost is 25% per year. Assume 50 weeks in a year. Given the problem parameters, what is the optimal order quantity the retailer should order? Numeric Response

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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f2
Same problem statement:
Weekly demand for DVD-Rs 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,
with a reorder point of 4,200 boxes. The order quantity to the supplier is fixed at 5,000 boxes. Replenishment lead time is 4 weeks, fixed order cost per order is $100, each box
costs the retailer $10, and the inventory holding cost is 25% per year. Assume 50 weeks in a year.
Given the problem parameters, what is the optimal order quantity the retailer should order?
Numeric Response
f3
2040
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Transcribed Image Text:f2 Same problem statement: Weekly demand for DVD-Rs 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, with a reorder point of 4,200 boxes. The order quantity to the supplier is fixed at 5,000 boxes. Replenishment lead time is 4 weeks, fixed order cost per order is $100, each box costs the retailer $10, and the inventory holding cost is 25% per year. Assume 50 weeks in a year. Given the problem parameters, what is the optimal order quantity the retailer should order? Numeric Response f3 2040 f4 f5 40 f6 0 4- f7 ♫+ < Prev. fg IAA * ** 4 of 5 hp ▷II f10 DDI Next > f11 W f12. X insert prt sc + = O delete ← backspace home num lock
f2
estion #5
Same problem statement:
Weekly demand for DVD-Rs 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,
with a reorder point of 4,200 boxes. The order quantity to the supplier is fixed at 5,000 boxes. Replenishment lead time is 4 weeks, fixed order cost per order is $100, each box
costs the retailer $10, and the inventory holding cost is 25% per year.
Under the current order quantity of 5,000 boxes and current reorder point of 4,200 boxes, what would be the order-up-to level S that the retailer should use as a baseline to
calculate how much inventory to order when conducting a periodic review?
Numeric Response
1500
f3
f4
f5
70
40
f6
0
4-
f7
s+
< Prev.
fg
IAA
5 of 5
fg
hp
▷II
f10
□
DDI
Next
f11
W
f12.
insert
prt sc
+
delete
← backspace
home
num
lock
Transcribed Image Text:f2 estion #5 Same problem statement: Weekly demand for DVD-Rs 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, with a reorder point of 4,200 boxes. The order quantity to the supplier is fixed at 5,000 boxes. Replenishment lead time is 4 weeks, fixed order cost per order is $100, each box costs the retailer $10, and the inventory holding cost is 25% per year. Under the current order quantity of 5,000 boxes and current reorder point of 4,200 boxes, what would be the order-up-to level S that the retailer should use as a baseline to calculate how much inventory to order when conducting a periodic review? Numeric Response 1500 f3 f4 f5 70 40 f6 0 4- f7 s+ < Prev. fg IAA 5 of 5 fg hp ▷II f10 □ DDI Next f11 W f12. insert prt sc + delete ← backspace home num lock
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