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Use Iable 14.1 You are the owner of Hotspices.com, an online retailer of hip, exotic, and hard-to-find spices. Consider your inventory of saffron, a spice
Use Iable 14.1 You are the owner of Hotspices.com, an online retailer of hip, exotic, and hard-to-find spices. Consider your inventory of saffron, a spice (generally) worth more by weight than gold. You order saffron from an overseas supplier with a shipping lead time of three weeks and you order weekly. Average weekly demand is normally distributed with a mean of 39 ounces and a standard deviation of 28 ounces. Use Table 14.1. Round your calculated z value to the nearest 0.1 increment. Round your answer to the nearest integer. a. Suppose it uses an order-up-to level of 297 ounces. What is its expected on-hand inventc Round your answer to the nearest integer. b. Suppose it uses an order-up-to level of 275 ounces. What is its expected on-order invents Use Table 14.1. Round your calculated z value to the nearest 0.1 increment. Round your answer to 4 decimal places. c. Suppose it uses an order-up-to level of 375 ounces. What is its in-stock probability? Use Table 14.1. Choose the z value with a cumulative probability AT LEAST as high as th required in-stock probability (e.g., if in-stock probability is 0.92 , use z=1.5 instead of z= Round your answer to the nearest integer. d. Suppose it wants a 0.95 in-stock probability. What should its order-up-to level be
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