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Jasper sells 17,000 carvings a year. He has weekly demand of 327 carvings with a weekly standard deviation of 85. The cost for Jasper
Jasper sells 17,000 carvings a year. He has weekly demand of 327 carvings with a weekly standard deviation of 85. The cost for Jasper to place an order to his supplier is $31.00, and the time from ordering to receipt is two weeks. The annual inventory carrying cost is $0.10 per carving. a. What is the reorder point necessary to provide a 99 percent service level over the lead time? Round the z score to 2 decimal places (e.g. z=0.58) and your final answer to the nearest whole number. Reorder point b. Suppose Jasper reduces the safety stock of this item by 50 percent. What is the new service level? Round the z score to 2 decimal places (e.g., z-4.82) and round your answer to the nearest 1 percent (e.g.. if the answer is 13.17%, enter 13.2, not 132 or 13.2%). Service level
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