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need both You may need to use the appropriate technology to answer this question. A daily newspaper is stocked by a colfee shop so its
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You may need to use the appropriate technology to answer this question. A daily newspaper is stocked by a colfee shop so its patrons can purchase and read it while they drink cotfee. The newspaper costs 51.14 per unit and sells for $1.55 per unit. If units are unsold at the end of the day, the supplier takes them back at a rebate of $1 per unit. Assume that daily demand is approximately normally distributed with =150 and =30 (a) What is your recommended daly order quantity for the coffee shop? (Round your answer to the nearest integer.) (b) What is the probability that the coffee shop will sell all the units it orders? (Round your answer to four decimal places.) (c) In problems such as these, why would the supplier offer a rebate as high as $1 ? For example, why not offer a nominal rebate? Find the recommended order quantity at 25 e per unit. (Round your answer to the nearest integer.) What happens to the cotfee shop's order quantity as the rebate is reduced? The higher rebate the quantity that the coffee shop should order. A heaich and nutrition store stocks a multivitamin with an annual demand of 1,000 botties has C6=$23.50 and Ch=57. The demand exhibits some variability such that the lead-time demand follows a normal probabiity distribution with =25 and =5. (a) What is the recommended order quantity? (Round your answer to the nearest integer.) (b) What are the reorder point and safety stock if the store desires at most a 6% probability of stock-out on any given order cycle? (Reound your answers to the nearest integer.) reorder point safety stock (c) If a manager sets the reorder point at 30 , what is the probability of a stock-out on any given order cycle? (Round your answer to four decimal places.) Haw many times would you expect a stock-out during the year if this reorder point were used? (Round your answer to the nearest integen) Step by Step Solution
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