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The Walmart distribution center has a constant demand for SKU #T35M of 10 units per day....

The Walmart distribution center has a constant demand for SKU #T35M of 10 units per day. Walmart is very particular and wishes a 98% service level. The lead time is normally distributed with a mean of 4 days and a standard deviation of 2 days. Holding cost is $2 per unit per year. A) What is the standard deviation of demand for the lead time? B) How much safety stock should be carried and what is the reorder point? C) If Q = 200, what is the total annual holding cost? (Quantitive Analysis for Management) Z= 2.05

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Answer #1

d 10 units pex day LT=4days H 32/uit/yeat Standard dutoutcov . dơin tim a I0x2 Hock) = -**tandard deuet.on eR duu a nd erete had bime z {95%) = 2.06 Salety stoek 2-06 x 20 ニ(0x4) + 41 0 t 41 c) G-200 unit 2

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