Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

1.H & K Electronic Warehouse sells a 12-pack of AAA batteries, and this is a very popular item.Demand for this is normally distributed, with an

1.H & K Electronic Warehouse sells a 12-pack of AAA batteries, and this is a very popular item.Demand for this is normally distributed, with an average of 50 packs per day and a standard deviation of 16.The average delivery time is 5 days, with a standard deviation of 2 days.Delivery time has been found to be normally distributed.A 96% service level is desired.

a.What is the standard deviation of demand during the lead time?

b.How much safety stock should be carried?What should be the reorder point?

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Cost Accounting Foundations and Evolutions

Authors: Michael R. Kinney, Cecily A. Raiborn

8th Edition

9781439044612, 1439044619, 978-1111626822

More Books

Students also viewed these Accounting questions

Question

5. It is the needs of the individual that are important.

Answered: 1 week ago