Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

(6.62. Super Sound sells stereo equipment. Monthly demand for a particular CD player has historically been normally distributed with mean 28 and standard deviation

 

(6.62. Super Sound sells stereo equipment. Monthly demand for a particular CD player has historically been normally distributed with mean 28 and standard deviation 8. It takes about three months for a shipment of CD players to arrive, once an order has been placed. Each unit costs the store $60, and it costs $150 to place an order. The inventory carrying cost rate is 30 percent. Assume they use an order quantity based on the standard EOQ. (a) What (Q.R) values would they use if they wish to apply policy 1 with 90 percent service level? (b) What fill rate does this policy achieve? mm tt information processing equipment. One item, the HDO80

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

Step: 3

blur-text-image

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

Statistics For Business And Economics

Authors: Paul Newbold, William Carlson, Betty Thorne

8th Edition

0132745658, 978-0132745659

More Books

Students also viewed these Marketing questions