Could somebody show the sets required? You are in charge of inventory control of a highly
successful product retailed by your firm. Weekly demand for this item varies, with an average of
300 units and a standard deviation of 24 units. It is purchased from a wholesaler at a cost of
$20.00 per unit. The supply lead time is 8 weeks. Placing an order costs $55.00, and the
inventory carrying rate per year is 10 percent of the item's cost. Your firm operates 7 days per
week, 50 weeks per year. Refer to the standard normal table for z-values. a. What is the optimal
ordering quantity for this item? units. (Enter your response rounded to the nearest whole
number.) b. How many units of the item should be maintained as safety stock for 99 percent
protection against stockouts during an order cycle? units. (Enter your response rounded to the
nearest whole number.) c. If supply lead time can be reduced to 4 weeks, what is the percent
reduction in the number of units maintained as safety stock for the same 99 percent stockout
protection? \%. (Enter your response rounded to two decimal places.) d. If through appropriate
sales promotions, the demand variability is reduced so that the standard deviation of weekly
demand is 9 units instead of 24, what is the percent reduction (compared to that in part (b)) in the
number of units maintained as safety stock for the same 99 percent stockout protection? (Enter
your response rounded to two decimal places.).
Could somebody show the sets required You are in charge of inventor.pdf
1. Could somebody show the sets required? You are in charge of inventory control of a highly
successful product retailed by your firm. Weekly demand for this item varies, with an average of
300 units and a standard deviation of 24 units. It is purchased from a wholesaler at a cost of
$20.00 per unit. The supply lead time is 8 weeks. Placing an order costs $55.00, and the
inventory carrying rate per year is 10 percent of the item's cost. Your firm operates 7 days per
week, 50 weeks per year. Refer to the standard normal table for z-values. a. What is the optimal
ordering quantity for this item? units. (Enter your response rounded to the nearest whole
number.) b. How many units of the item should be maintained as safety stock for 99 percent
protection against stockouts during an order cycle? units. (Enter your response rounded to the
nearest whole number.) c. If supply lead time can be reduced to 4 weeks, what is the percent
reduction in the number of units maintained as safety stock for the same 99 percent stockout
protection? %. (Enter your response rounded to two decimal places.) d. If through appropriate
sales promotions, the demand variability is reduced so that the standard deviation of weekly
demand is 9 units instead of 24, what is the percent reduction (compared to that in part (b)) in the
number of units maintained as safety stock for the same 99 percent stockout protection? (Enter
your response rounded to two decimal places.)
