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11 2,14 pomts Problem 20-22 (Algo) Annual demand for a product is 16,120 units; weekly demand is 310 units with a standard deviation of 55
11 2,14 pomts Problem 20-22 (Algo) Annual demand for a product is 16,120 units; weekly demand is 310 units with a standard deviation of 55 units. The cost of placing an order is $145. and the time from ordering to receipt is four weeks. The annual inventory carrying cost is $0.55 per unit. a. To provide a 90 percent service probability. what must the reorder point be? (Use Excel's NORMSINVO function to find the correct critical value for the given a-level. Do not round intermediate calculations. Round \"2" value to 2 decimal places and final answer to the nearest whole number.) 0 Answer is complete and correct. Reorder point | 1.381 0 lunits ' b. Suppose the production manager is told to reduce the safety stock of this item by 80 units. lfthis is done, what will the new service probability be? (Use Excel's NORMSDISTO function to find the correct probability for your computed Z-value. Round your answer to the nearest whole number.) 6 Answer is complete but not entirely correct. Service probability 90 Q |%
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