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Question 25 0 / 3 pts Max's Floral Shoppes is a three store retailer of fresh Hawaiian inspired floral arrangements serving the greater Santa Monica

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Question 25 0 / 3 pts Max's Floral Shoppes is a three store retailer of fresh "Hawaiian" inspired floral arrangements serving the greater Santa Monica area. Max's has a central refrigerated warehouse where he stores exotic flowers shipped directly to him (by air) from his supplier in Maui Hawaii. The lead-time from order to receipt is 2 weeks, Max's order costs are $150 per order and his holding cost are 10% of the cost of a stem. Note that a "stem" is a single flower in an arrangement. Stems are ordered as individual units. Each arrangement created by Max has 8 stems and the average cost per stem is $3. The grouping only occurs when the arrangements are created. Stems are maintained individually while in inventory. Max sells each arrangement for $65. Max's annual demand follows a normal distribution with a mean of 10,700 arrangements and a standard deviation of 650 arrangements. To maintain customer goodwill Max's has set a high service level objective of 95% in stock. What should be Max's ROP (Reorder Point). Answer in number of stems. Use the Z-table from a Prior Problem This Problem Counts 3 Points 0 6120 3288 ver Q 4975 0 622 1682 3292

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