Problem 13-28

Regional Supermarket is open 365 days per year. Daily use of cash register tape averages 16 rolls. Usage appears normally distributed with a standard deviation of 3 rolls per day. The cost of ordering tape is $1.50, and carrying costs are 43 cents per roll a year. Lead time is 3 days.

A. What is the EOQ? (Round your answer to the nearest whole number.) EOQ

B. What ROP will provide a lead time service level of 95 percent? (Round your answer to the nearest whole number.)

C. What is the expected number of units short per cycle with 95 percent? Per year? (Round your answers to 4 decimal places.)

Expected number of units Per cycle ? and Per year ?

D. What is the annual service level? (Round your answer to 4 decimal places.) Annual service level ?