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For number 2, I need help with part C.

BELOW THESE ARE WRONG ANSWERS FOR NUMBER 2.

1.092

30.876

17.575

41.425

Demand for a book at Amazon.com is 220 units per week. The product is supplied to Amazon from a factory. The factory chargesCharlies Pizza orders all of its pepperoni, olives, anchovies, and mozzarella cheese to be shipped directly from Italy. An AExpando, Inc., is considering the possibility of building an additional factory that would produce a new addition to their pr

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Answer #1

2.

c) Optimal shipment size = sqrt((2*annual demand*ordering cost)/holding cost per unit per year) = SQRT((2*52*220*60)/1.8) = 873.3078877

Number of orders = (52*220)/873.3078877 = 13.09961831

Time between orders = number of months/number of orders = 12/13.09961831 = 0.916057225

Average throughput time = 0.916057225/2 = 0.458028613 = 0.458 months (Rounded to 3 decimal places)

3.

z score = normsinv(0.9) = 1.281551566 = 1.28 (Rounded to 2 decimal places)

Amount of pepperoni's ordered = Weekly demand*(lead time + review period) + z*standard deviation of demand*sqrt(lead time + review period) - on-hand inventory

=190*(3+2) + 1.28*28*sqrt(3+2)-460 = 570.1406763 = 570 (Rounded to nearest whole number)

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