Question
EShack sells a model of Creative Labs blue-tooth adapter for $35 and expect to sell it for foreseeable future. Given their clout with the manufacturer,
EShack sells a model of Creative Labs blue-tooth adapter for $35 and expect to sell it for foreseeable future. Given their clout with the manufacturer, they are able to procure it at a price of $7.50. EShack estimates its daily demand to be normally distributed with mean 200 and standard deviation of 28 units. It reviews the inventory of the blue-tooth adapter once every day and places an order with the supplier using e-procurement software. The supplier lead-time for replenishment is 10 days including all manufacturing, transportation, etc.
a) If EShack decides on an order up-to level of 2150 units, what is its expected on-hand inventory of Creative Labs blue-tooth adapter?
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