A health and nutrition store stocks a multivitamin with an annual demand of 1,000 bottles has C_o = $26.50 and C_h = $9. The demand exhibits some variability such that the lead-time demand follows a normal probability distribution with = 25 and = 5.

(a) What is the recommended order quantity? (Round your answer to the nearest integer.)

(b) What are the reorder point and safety stock if the store desires at most a 6% probability of stock-out on any given order cycle? (Round your answers to the nearest integer.)

reorder point _____

safety stock _____

(c) If a manager sets the reorder point at 30, what is the probability of a stock-out on any given order cycle? (Round your answer to four decimal places.)

_____

How many times would you expect a stock-out during the year if this reorder point were used? (Round your answer to the nearest integer.)

_____

A health and nutrition store stocks a multivitamin with an annual demand of 1,000 bottles has C0=$26.50 and Ch=$9. The demand exhibits some variability such that the lead-time demand follows a normal probability distribution with =25 and =5 (a) What is the recommended order quantity? (Round your answer to the nearest integer.) (b) What are the reorder point and safety stock if the store desires at most a 6% probability of stock-out on any given order cycle? (Round your answers to the nearest integer.) reorder point safety stock (c) If a manager sets the reorder point at 30, what is the probability of a stock-out on any given order cycle? (Round your answer to four decimal places.) How many times would you expect a stock-out during the year if this reorder point were used? (Round your answer to the nearest integer.)