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Palin's Muffler Shop has one standard muffler that fits a large variety of cars. The shop wishes to establish a periodic review system to manage
Palin's Muffler Shop has one standard muffler that fits a large variety of cars. The shop wishes to establish a periodic review system to manage inventory of this standard muffler. Use the information in the following table to determine the optimal inventory target level (or order-up-to level). a. What is the optimal target level (order-up-to level)? (Use Excel's NORMSINV0 function to find the correct critical value for the given o-level. Do not round intermediate calculations. Round " q " value to 2 decimal places and final answer to the nearest whole number.) b. If the service probability requirement is 96 percent, the optimal target level will: Increase Decrease
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