Answered step by step
Verified Expert Solution
Question
1 Approved Answer
H4. A factory orders supplies every 6 days. The lead time for deliveries is 7 days. Demand for steel averages 16 pounds per day with
H4.
A factory orders supplies every 6 days. The lead time for deliveries is 7 days. Demand for steel averages 16 pounds per day with a standard deviation of 1.9 pounds. The holding cost for steel is $0.53 per pound per day. The restaurant wants to achieve an in-stock probability rate of 99.5% for steel.
On average, how many pounds of steel will the factory have on hand?
Note: Round your answer to 1 decimal place.
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started