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Anvils Works' requires, on average, 2,600 tons of aluminum each week, with a standard deviation of 900 tons. The lead time to receive its orders
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Anvils Works' requires, on average, 2,600 tons of aluminum each week, with a standard deviation of 900 tons. The lead time to receive its orders is 10 weeks. The holding cost for one ton of aluminum for one week is $10. 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. b. On average, how many tons does it have on hand? Note: Round your answer to nearest integer. c. If its average inventory was 12,500 tons, what would be its average holding cost per week? Note: Round your answer to nearest integer. d. If its average inventory was 11,000 tons, what would be its average holding cost per ton of aluminum? Note: Round your answer to 2 decimal places. d. If its average inventory was 11,000 tons, what would be its average holding cost per ton of aluminum? Note: Round your answer to 2 decimal places. e. Suppose its on-hand inventory is 4,950 tons, on average. What in-stock probability does it offer to its customers? Hint: use the = NORM.S.DIST(z,1) Excel function. Note: Do not round intermediate calculations or your z value. Round your final answer to 4 decimal places
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