Dunstreet's Department Store would like to develop an inventory ordering policy of a 90 percent probability...

Question

Question

Dunstreets Department Store would like to develop an inventory ordering policy of a 90 percent probability of not stocking o

Add a comment Improve this question Transcribed image text

Answer 1

Answer #1

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

Number of sheets to order = Daily demand *(lead time+review time)+z*standard deviation of demand*sqrt(lead time+review time)-Current inventory on hand

=(3400/365)*(12+14)+1.28*5*sqrt(12+14)-170

= 104.8255057

= 105 (Rounded to nearest whole number)

Add a comment

Answer 2

Similar Homework Help Questions

Dunstreet's Department Store would like to develop an inventory ordering policy of a 98 percent probability...

Dunstreet's Department Store would like to develop an inventory ordering policy of a 98 percent probability of not stocking out To illustrate your recommended procedure, use as an example the ordering policy for white percale sheets. Demand for white percale sheets is 3.900 per year. The store is open 365 days per year. Every three weeks (21 days) inventory is counted and a new order is placed. It takes 15 days for the sheets to be delivered. Standard deviation of...
Dunstreet's Department Store would like to develop an inventory ordering policy with a 99 percent probability...

Dunstreet's Department Store would like to develop an inventory ordering policy with a 99 percent probability of not stocking out. To illustrate your recommended procedure, use as an example the ordering policy for white percale sheets. Demand for white percale sheets is 4,300 per year. The store is open 365 days per year. Every four weeks (28 days) inventory is counted and a new order is placed. It takes 12 days for the sheets to be delivered. Standard deviation of...
Dunstreet's Department Store would like to develop an inventory ordering policy of a 95 percent probability...

Dunstreet's Department Store would like to develop an inventory ordering policy of a 95 percent probability of not stocking out. To illustrate your recommended procedure, use as an example the ordering policy for white percale sheets. Demand for white percale sheets is 3,400 per year. The store is open 365 days per year. Every two weeks (14 days) inventory is counted and a new order is placed. It takes 9 days for the sheets to be delivered. Standard deviation of...

Dunstreets Department store would like to develop an inventory ordering policy of 95% probability of not...

Dunstreets Department store would like to develop an inventory ordering policy of 95% probability of not stocking. To illustrate your recommended procedure, use as an example the ordering policy for white percale sheets Demand for white percale sheets is 5,000 per uear. The store is open 365 days per year. Every 2 weeks (14 days) inventory is counted and a new order is placed. It takes 10 days for the sheet to be delivered. Standard deviation of demand for the...
Problem 20-13 "periodic review system - similar to Alt-Cat 20.4* Dunstreet's Department Store would like to...

Problem 20-13 "periodic review system - similar to Alt-Cat 20.4* Dunstreet's Department Store would like to develop an inventory ordering policy of a 90 percent probability of not stocking out. To illustrate your recommended procedure, use as an example the ordering policy for white percale sheets. Demand for white percale sheets is 3,400 per year. The store is open 365 days per year. Every two weeks (14 days) inventory is counted and a new order is placed. It takes 12...
Problem 2 The ER would like to add Tegaderm (a semi-occlusive dressing) to the pharmacy’s inventory,...

Problem 2 The ER would like to add Tegaderm (a semi-occlusive dressing) to the pharmacy’s inventory, as it currently stocks none and it would be helpful for patients to be able to apply at home after discharge. It has been assigned SKU-2319. You are in charge of ordering the correct amount of inventory. We know demand will be 80 dressings per day. Tegaderm is pricey, at about $1.50 per dressing with a fixed ordering and shipping cost of $12 per...

Suppose that a distributor would like to design an optimal ordering quantity at an optimal time. Their demand is at a constant rate of 1000 units per week. In addition, any time they place an order, t...

Suppose that a distributor would like to design an optimal ordering quantity at an optimal time. Their demand is at a constant rate of 1000 units per week. In addition, any time they place an order, their supplier charges them a fixed fee of $500 and $20 per unit. It also costs them $5 per unit per week to store the product in inventory. Use this information to answer the questions 1-3. 1. What is the approximate amount of products...
The manager at the local store of a national home improvement chain is studying their inventory...

The manager at the local store of a national home improvement chain is studying their inventory system. He has chosen one high volume product as the first product to examine. The historical supply and demand data for this item has indicated a constant lead time of 16 days. Demand per day (d) is normally distributed with a mean demand of 2000 per day and standard deviation of 240 per day. He plans to set the in-stock probability (or service level)...
10. Write a one-page summary of the attached paper? INTRODUCTION Many problems can develop in activated...

10. Write a one-page summary of the attached paper? INTRODUCTION Many problems can develop in activated sludge operation that adversely affect effluent quality with origins in the engineering, hydraulic and microbiological components of the process. The real "heart" of the activated sludge system is the development and maintenance of a mixed microbial culture (activated sludge) that treats wastewater and which can be managed. One definition of a wastewater treatment plant operator is a "bug farmer", one who controls the aeration...

Dunstreet's Department Store would like to develop an inventory ordering policy of a 90 percent probability...

Homework Answers

Add Answer to:
Dunstreet's Department Store would like to develop an inventory ordering policy of a 90 percent probability...

Post as a guest

Earn Coins

Dunstreet's Department Store would like to develop an inventory ordering policy of a 98 percent probability...

Dunstreet's Department Store would like to develop an inventory ordering policy with a 99 percent probability...

Dunstreet's Department Store would like to develop an inventory ordering policy of a 95 percent probability...

Dunstreets Department store would like to develop an inventory ordering policy of 95% probability of not...

Problem 20-13 "periodic review system - similar to Alt-Cat 20.4* Dunstreet's Department Store would like to...

Problem 2 The ER would like to add Tegaderm (a semi-occlusive dressing) to the pharmacy’s inventory,...

Suppose that a distributor would like to design an optimal ordering quantity at an optimal time. Their demand is at a constant rate of 1000 units per week. In addition, any time they place an order, t...

The manager at the local store of a national home improvement chain is studying their inventory...

10. Write a one-page summary of the attached paper? INTRODUCTION Many problems can develop in activated...

Dunstreet's Department Store would like to develop an inventory ordering policy of a 90 percent probability...

Homework Answers

Add Answer to: Dunstreet's Department Store would like to develop an inventory ordering policy of a 90 percent probability...

Post as a guest

Earn Coins

Add Answer to:
Dunstreet's Department Store would like to develop an inventory ordering policy of a 90 percent probability...