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Please show calculations using excel functions. Weekly demand for Dell computers at a Costco store is normally distributed, with a mean of 250 and a
Please show calculations using excel functions.
Weekly demand for Dell computers at a Costco store is normally distributed, with a mean of 250 and a standard deviation of (150+ Your Course ID). The store manager continuously monitors inventory and currently orders 1,000 computers each time the inventory drops to 600 units. Dell currently takes two weeks to fill an order (lead time). 1. How much safety inventory does the store carry? 2. What CSL does Costco achieves as a result of this policy? 3. How much safety inventory should Costco carry if they desire to improve its CSL by 10% ? Continuous Review Policy (Q system) Inventory is continuously tracked, and an order for a lot size of Q is placed when the inventory position drops down to the reorder point (ROP). ROP=EDDLT+SSEDDLT=dXL Safety inventory SS=ROPEDDLT=ROPdXL Cycle inventory =Q/2 Average inventory = Cycle inventory + Safety inventory Standard deviation of demand during lead time L=L z=SS/LCSL=NORMSDIST(z)safetyinventorySS=zLz=NORMSINV(CSL)SafetyInventorySS=NORMSINV(CSL)L Weekly demand for Dell computers at a Costco store is normally distributed, with a mean of 250 and a standard deviation of (150+ Your Course ID). The store manager continuously monitors inventory and currently orders 1,000 computers each time the inventory drops to 600 units. Dell currently takes two weeks to fill an order (lead time). 1. How much safety inventory does the store carry? 2. What CSL does Costco achieves as a result of this policy? 3. How much safety inventory should Costco carry if they desire to improve its CSL by 10% ? Continuous Review Policy (Q system) Inventory is continuously tracked, and an order for a lot size of Q is placed when the inventory position drops down to the reorder point (ROP). ROP=EDDLT+SSEDDLT=dXL Safety inventory SS=ROPEDDLT=ROPdXL Cycle inventory =Q/2 Average inventory = Cycle inventory + Safety inventory Standard deviation of demand during lead time L=L z=SS/LCSL=NORMSDIST(z)safetyinventorySS=zLz=NORMSINV(CSL)SafetyInventorySS=NORMSINV(CSL)LStep by Step Solution
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