Question
An electronics superstore is carrying a 60 LEDTV for the upcoming Christmas holiday sales. The optimal service level is 30%. The period of sales is
An electronics superstore is carrying a 60 LEDTV for the upcoming Christmas holiday sales. The optimal service level is 30%. The period of sales is normally distributed with an average 5 weeks, and standard deviation of 1.3 weeks. Demand per week is fixed and is 20 units. One of the following formulas may be useful. Sigma(LTD) = SQRT(L)*Sigma(R). Sigma(LTD) = R*Sigma(L).
1. Compute the average demand during the sales period.
The potential answers are:
A: 120 units
B: 105 units
C: 270 units
D: 200 units
E: 100 units
2. Compute the standard deviation of demand during the sales period.
A: 32.5 units
B: 35 units
C: 26 units
D: 81 units
E: 37.5 units
3. How many units should we order to retain the optimal service level (roundup)?
The potential answers are:
A: 216
B: 153
C: 147
D: 171
E: 87
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