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Edgen Murray is a distributor of carbon, chrome and alloy pipes. They would like to estimate sales levels for their welded sections for riser pipes.

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Edgen Murray is a distributor of carbon, chrome and alloy pipes. They would like to estimate sales levels for their welded sections for riser pipes. Using two-point method, they have observed that: - When 90% of orders are delivered within 4 days, weekly sales are observed to be 12,000 items. - When 20% of orders take longer than 4 days, weekly sales are observed to be 10,000 items. a) [7] What are the estimated weekly sales if 21% of orders take longer than 4 days to be delivered? b) [7] What are the weekly sales if 85% of orders are delivered within 4 days? Edgen Murray changes the service level to 85% actually and operated with this for a while. They observed the actual weekly sales to be 11,500 units. c) [7] Considering this new observation, what are the estimated weekly sales if Edgen Murray delivers 87.5% of orders within 4 days? [Since there are three data points for sales-SL relationship, you should decide which two points to use.] Edgen Murray is a distributor of carbon, chrome and alloy pipes. They would like to estimate sales levels for their welded sections for riser pipes. Using two-point method, they have observed that: - When 90% of orders are delivered within 4 days, weekly sales are observed to be 12,000 items. - When 20% of orders take longer than 4 days, weekly sales are observed to be 10,000 items. a) [7] What are the estimated weekly sales if 21% of orders take longer than 4 days to be delivered? b) [7] What are the weekly sales if 85% of orders are delivered within 4 days? Edgen Murray changes the service level to 85% actually and operated with this for a while. They observed the actual weekly sales to be 11,500 units. c) [7] Considering this new observation, what are the estimated weekly sales if Edgen Murray delivers 87.5% of orders within 4 days? [Since there are three data points for sales-SL relationship, you should decide which two points to use.]

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