Bads, Inc., sells an average of 1,000 food processors each year. Each order for foodprocessors placed by Bads costs $50. The lead time is one month. It costs $10 to hold afood processor in inventory for one year. Annual demand for food processors is normallydistributed, with a standard deviation of 69.28. For each of the following values of SLM1,determine the reorder point: 80%, 90%, 95%, 99%, 99.9%.
Bads, Inc., sells an average of 1,000 food processors each year. Each order for foodprocessors placed by Bads costs $50. The lead time is one month. It costs $10 to hold afood processor in inventory for one year. Annual demand for food processors is normallydistributed, with a standard deviation of 69.28. For each of the following values of SLM1,determine the reorder point: 80%, 90%, 95%, 99%, 99.9%.
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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Bads, Inc., sells an average of 1,000 food processors each year. Each order for foodprocessors placed by Bads costs $50. The lead time is one month. It costs $10 to hold afood processor in inventory for one year. Annual demand for food processors is normallydistributed, with a standard deviation of 69.28. For each of the following values of SLM1,determine the reorder point: 80%, 90%, 95%, 99%, 99.9%.
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