Question
A computer store sells an average of 1000 new iPhones each year. Annual demand is normally distributed with a standard deviation of 41 iPhones. The
A computer store sells an average of 1000 new iPhones each year. Annual demand is normally distributed with a standard deviation of 41 iPhones. The store orders directly from Apple. Each order is filled in two (2) weeks. The cost of placing an order is $50, and the annual cost of holding one iPhone in inventory is $10. Find the right QR system and safety stock for the backordered case (cB = $20) and lost sales case (cLS = $40). What is Type 1 service? What is Type 2 service? Also update the reorder points to achieve 99.99% Type 2 service; how much additional safety stock is required in each case? Remember to answer these questions under each case, backordered and lost sales.
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Applied Statistics In Business And Economics
Authors: David Doane, Lori Seward
4th Edition
73521485, 978-0073521480
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