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One of the most popular items at Locals Department Store is their king size percale sheet set. The daily demand for their king size
One of the most popular items at Locals Department Store is their king size percale sheet set. The daily demand for their king size percale sheet sets is normally distributed with a mean 500 set with a standard deviation of 40. Locals Department Store places orders on Monday. The lead time on king size percale sheet sets is 7 days. Locals Department store maintains a customer service level is 95% on all items they stock. 1. What is the order interval (T)? days days 2. What is the vulnerable period (T+L)? 3. What is the average demand for king size percale sheet set over the vulnerable period (T+L)? 4. What is the variance of daily demand ()? 5. What is the variance of the demand over the vulnerable period ((T+L))? 6. What is the standard deviation of demand over the vulnerable period ((T+L))? 7. What is the value of a? sets 8. What is the value of Za? 9. The order amount (q) is q = (Round up to two decimals and use this value in subsequent calculations.) - IP (Round to closest integer value and us this value in subsequent calculations.) where IP is the inventory position at the time the order is placed 10. If there are 50 sheet sets on the shelf when this week's order is placed, how many sheet sets should Locals order?
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