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Demand for a popular hospital bed from a Hill - Rom warehouse in the US is normally distributed with a mean of 4 0 2
Demand for a popular hospital bed from a HillRom warehouse in the US is normally distributed with a mean of unitsweek and standard deviation of unitsweek Lately, HillRom's contract manufacturer has been unreliable with its deliveries. HillRom estimates the lead time is normally distributed with a mean of weeks and standard deviation weeks. HillRom orders the beds at a unit cost of $ The annual cost of carrying inventory at the warehouseis of the purchase cost per unit per year. HillRom reviews its inventory continuously. Assume the warehouse operates weeksyear daysweek and daysyear
Suppose that HillRom works with its contract manufacturer to improve reliability in the supply chain such that lead times are guaranteed at weeks.
Compute the savings in annual holding cost of the safety stock in $ needed to maintain a service level of
Carry calculations to at least decimal places.
Round your answer to the nearest tenth of a dollar one decimal place
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