Answered step by step
Verified Expert Solution
Question
1 Approved Answer
show how to solve on paper please weekly demand for area rugs at a Pottery Barn distribution center (DC) is normally distributed with a mean
show how to solve on paper please
weekly demand for area rugs at a Pottery Barn distribution center (DC) is normally distributed with a mean of 79 units/day and standard deviation of 26 units/day. Pottery Barn orders rugs at a unit cost of $253. The annual cost of carrying inventory at the store is 44% of the purchase cost per unit per year. It takes 27 days to receive a delivery. The store reviews its inventory continuously. Assume 52 weeks/year, 7 days/week and 364 days/year. Compute the annual holding cost of the safety stock (in \$) needed to maintain a cycle service level of 98%. - Carry your calculations to at least 3 decimal places. - Round your answer to the nearest tenth of a dollar (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