Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

please A local service station is open 7 days per week, 365 days per year. Sales of 10 W40 grade premium oil average 20 cans

please
image text in transcribed
A local service station is open 7 days per week, 365 days per year. Sales of 10 W40 grade premium oil average 20 cans per day. Inventory holding costs are $0.60 per can per year. Ordering costs are $14 per order. Lead time is two weeks. Backorders are not practical-the motorist drives away. a. Based on these data, calculate the economic order quantity and reorder point. Hint: Assume demand is deterministic. (Round your answers to the nearest whole number.) Answer is complete but not entirely correct. b. The boss is concerned about this model because demand really varies. The standard deviation of demand was determined from a data sample to be 7.55 cans per day. The manager wants a 98 percent service probability. Determine a new inventory plan based on this information and the data in a. Use Qopt from a. (Use Excel's NORMSINV0 function to find the correct critical value for the given a-level. Do not round intermediate calculations. Round " z " value to 2 decimal places and final answer to the nearest whole number.) Answer is complete but not entirely correct. A local service station is open 7 days per week, 365 days per year. Sales of 10 W40 grade premium oil average 20 cans per day. Inventory holding costs are $0.60 per can per year. Ordering costs are $14 per order. Lead time is two weeks. Backorders are not practical-the motorist drives away. a. Based on these data, calculate the economic order quantity and reorder point. Hint: Assume demand is deterministic. (Round your answers to the nearest whole number.) Answer is complete but not entirely correct. b. The boss is concerned about this model because demand really varies. The standard deviation of demand was determined from a data sample to be 7.55 cans per day. The manager wants a 98 percent service probability. Determine a new inventory plan based on this information and the data in a. Use Qopt from a. (Use Excel's NORMSINV0 function to find the correct critical value for the given a-level. Do not round intermediate calculations. Round " z " value to 2 decimal places and final answer to the nearest whole number.) Answer is complete but not entirely correct

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

General Aviation Marketing And Management

Authors: C. Daniel Prather

3rd Edition

9781575243016

More Books

Students also viewed these General Management questions

Question

How do the touch screen displays on some computers work?

Answered: 1 week ago

Question

What is the effect of word war second?

Answered: 1 week ago