Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Additional Algo 11-4 On-Order Quantity A fabricating shop orders supplies every 4 days. The lead time for deliveries is 7 days. Demand for acetylene averages
Additional Algo 11-4 On-Order Quantity A fabricating shop orders supplies every 4 days. The lead time for deliveries is 7 days. Demand for acetylene averages 28 pounds per day with a standard deviation of 3.1 pounds. The holding cost for acetylene is $0.5 per pound per day. The fabricating shop wants to achieve an instock probability rate of 98% for acetylene. On average, how many pounds of acetylene will the fabricating shop have on order
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started