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PA 14-7 (Algo) Cyber Chemicals uses liquid nitrogen on a... Cyber Chemicals uses liquid nitrogen on a regular basis. Average daily demand is normally distributed
PA 14-7 (Algo) Cyber Chemicals uses liquid nitrogen on a... Cyber Chemicals uses liquid nitrogen on a regular basis. Average daily demand is normally distributed with a mean of 184 gallons and a standard deviation of 41. Cyber operates Six days a week and orders from its supplier once each week. The supplier takes one week to deliver Cybers order.
c. Suppose an order-up-to level of 2550 is used. What is the expected on-order inventory? 1,104 (Round your answer to 4 decimal places.) Suppose an order-up-to level of 2697 is used. What is the in-stock probability? Use Table d. 14.1 0.4141 (Round your answer to 4 decimal places.) Suppose an order-up-to level of 2375 is used. What is the stockout probability? Use e. Table 14.1 f. Suppose Cyber Chemicals wants a 0.935 in-stock probability. What should the order-up- to level be? Use Excel and round to nearest integer. Z TABLE 14.1 The Distribution Function, F(z), and the Inventory Function, I(z), for the Standard Normal Distribution Function z F(z) (z) F(z) I(z) .0000 0.0000 0.1 .5398 0.4509 - 3.9 .0000 0.0000 0.2 .5793 0.5069 - 3.8 .0001 0.0000 0.3 .6179 0.5668 -3.7 .0001 0.0000 0.4 .6554 0.6304 -4.0 -3.6 .0002 0.0000 0.5 .6915 0.6978 - 3.5 0.0001 0.6 .7257 0.7687 -3.4 .0002 .0003 .0005 0.0001 0.7 .7580 0.8429 - 3.3 0.0001 0.8 .7881 0.9202 -3.2 .0007 0.0002 0.9 .8159 1.0004 -3.1 0.0003 1.0 .8413 1.0833 .0010 .0013 .0019 0.0004 1.1 .8643 -3.0 -2.9 1.1686 0.0005 1.2 .8849 1.2561 - 2.8 .0026 0.0008 1.3 .9032 1.3455 -2.7 .0035 1.4 .9192 1.4367 -2.6 .0047 0.0011 0.0015 0.0020 1.5 .9332 1.5293 -2.5 1.6 .9452 1.6232 -2.4 0.0027 .9554 1.7183 .0062 .0082 .0107 .0139 .0179 1.7 1.8 -2.3 0.0037 .9641 1.8143 -2.2 0.0049 1.9 .9713 1.9111 -2.1 0.0065 2.0 .9772 2.0085 - 2.0 .0228 2.1 .9821 2.1065 - 1.9 .0287 2.2 .9861 2.2049 0.0085 0.0111 0.0143 0.0183 - 1.8 .0359 2.3 2.3037 .9893 .9918 - 1.7 .0446 2.4 2.4027 -1.6 .0548 0.0232 2.5 .9938 2.5020 - 1.5 .0668 0.0293 2.6 .9953 2.6015 - 1.4 .0808 0.0367 2.7 .9965 2.7011 - 1.3 .0968 2.8 .9974 2.8008 - 1.2 . 1151 2.9 .9981 - 1.1 .1357 3.0 .9987 0.0455 0.0561 0.0686 0.0833 0.1004 0.1202 - 1.0 . 1587 3.1 2.9005 3.0004 3.1003 3.2002 3.3001 -0.9 .1841 .9990 .9993 .9995 3.2 -0.8 .2119 3.3 -0.7 .2420 0.1429 3.4 .9997 3.4001 -0.6 .2743 0.1687 3.5 .9998 3.5001 -0.5 3085 0.1978 3.6 .9998 3.6000 -0.4 3446 0.2304 3.7 .9999 3.7000 -0.3 .3821 0.2668 3.8 .9999 3.8000 -0.2 .4207 0.3069 3.9 1.0000 3.9000 -0.1 .4602 0.3509 4.0 1.0000 4.0000 0.0 .5000 0.3989Step by Step Solution
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