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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.

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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 191 units/week and standard deviation of 30 units/week. Lately, the supplier has been unreliable with its deliveries. TBB estimates the lead time is normally distributed with mean 4 weeks and standard deviation 3 weeks. TBB orders the windshields at a unit cost of $1,566. The annual cost of carrying inventory at the plant is 35% 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. Suppose that TBB works with its supplier to improve reliability in the supply chain such that lead times are guaranteed at 4 weeks. Compute the savings in annual holding cost of the safety stock (in \$) 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 dollar (one decimal place), 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 191 units/week and standard deviation of 30 units/week. Lately, the supplier has been unreliable with its deliveries. TBB estimates the lead time is normally distributed with mean 4 weeks and standard deviation 3 weeks. TBB orders the windshields at a unit cost of $1,566. The annual cost of carrying inventory at the plant is 35% 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. Suppose that TBB works with its supplier to improve reliability in the supply chain such that lead times are guaranteed at 4 weeks. Compute the savings in annual holding cost of the safety stock (in \$) 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 dollar (one decimal place)

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