Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Anvils Works' requires, on average, 2 , 7 0 0 tons of aluminum each week, with a standard deviation of 1 , 1 0 0

Anvils Works' requires, on average, 2,700 tons of aluminum each week, with a standard deviation of 1,100 tons The lead time to
receive its orders is 12 weeks. The holding cost for one ton of aluminum for one week is $11. It operates with a 0.98 in-stock probability.
a. On average, how many tons does it have on order?
Note: Round your answer to nearest integer.
Answer is complete and correct.
Tons
b. On average, how mary tons does It have on hand?
Note: Round your answer to nearest integer.
Answer is complete and correct.
c. If Its average inventory was 7,500 tons, what would be its average holding cost per week?
Note: Round your answer to nearest integer.
Answer is complete and correct.
Average holding cost per week
82,500
d. If its average inventory was 9,000 tons, what would be its average holding cost per ton of aluminum?
Note: Round your answer to 2 decimal places.
Answer is complete and correct.
Average holding cost per ton
e. Suppose its on-hand inventory is 5,400 tons, on average. What in-stock probability does it orrer to its customers? Hint use the
=NORM S.DIST (z,1) Excel function.
Note: Do not found intermediate calculations or your z value. Round your final answer to 4 decimal places.
Answer is complete but not entirely correct.
image text in transcribed

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

Modern Database Management

Authors: Heikki Topi, Jeffrey A Hoffer, Ramesh Venkataraman

10th Edition

0132998440, 9780132998444

More Books

Students also viewed these General Management questions