Answered step by step
Verified Expert Solution
Question
1 Approved Answer
show how to solve on paper please Thomas Built Buses (TBB) manufacturers yellow school buses at its facility in High Point, NC. TBB orders its
show how to solve on paper please
Thomas Built Buses (TBB) manufacturers yellow school buses at its facility in High Point, NC. TBB orders its windshields from a specialty vehicle glass supplier. Weekly requirements for the windshields are normally distributed with a mean of 167 units/week and standard deviation of 88 units/week. Lately, the supplier has been unreliable with its deliveries. TBB estimates the lead time is normally distributed with mean 3 weeks and standard deviation 2 weeks. TBB orders the windshields at a unit cost of $2314. The annual cost of carrying inventory at the plant is 30% of the purchase cost per unit per year. TBB reviews its windshield inventory continuously. Assume 52 weeks/year, 7 days/week, and 364 days/year. Compute the safety stock needed to maintain a service level of 92%. - Carry calculations to at least 3 decimal places. - Round your answer to the nearest tenth of a unit (one decimal place). A table of z-values is provided for your reference Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started