Use Table 14.1. ACold Inc is a frozen food distributor with 10 warehouses across the country. Ivan Tory, one of the warehouse managers, wants to make sure that the inventory policies used by the warehouse are minimizing inventory while still maintaining quick delivery to ACold's customers. Since the warehouse carries hundreds of different products, Ivan decided to study one. He picked Caruso's Frozen Pizza (CFP). Average daily demand for CFPS is normally distributed with a mean of 411 and a standard deviation of 159. Since ACold orders at least one truck from their supplier each day, ACold can essentially order any quantity of CFP it wants each day. In fact, ACold's computer system is designed to implement an order-up-to policy for each product. Ivan notes that any order for CFPS arrives 5 days after the order. Suppose an order-up-to level of 2412 is used. What is the expected on-hand inventory? a. Use Table 14.1 and round to nearest integer. Suppose an order-up-to level of 2411 is used. What is the expected on-order inventory? b. Round your answer to the nearest integer. Suppose an order-up-to level of 1916 is used. What is the in-stock probability? Use c. Table 14.1. Round your answer to one decimal. a Suppose ACold wants a 0.95 in-stock probability. What should the order-up-to level be? Use Table 14.1. Round your answer to the nearest integer. TABLE 14.1 The Distribution Function, F(2), and the Inventory Function, I2), for the Standard Normal Distribution Function Fiz) Fz) Iz) I(z) -4.0 .0000 0.0000 0.1 5398 0.4509 0 0.0000 0.2 5793 0.5069 -3.9 -3.8 0001 0.0000 0.3 .6179 0.5668 -3.7 0001 0.0000 0.4 .6554 0.6304 -3.6 0002 0.0000 0.5 6915 0.6978 -3.5 0002 0.0001 0.6 7257 0.7687 -3.4 0.0001 0003 0.7 7580 0.8429 -3.3 0.0001 0.8 .7881 0.9202 0.0002 1.0004 -3.2 0007 0.9 8159 0.0003 -3.1 0010 1.0 8413 1.0833 0.0004 -3.0 0013 1.1 8643 1.1686 -2.9 0019 0.0005 1.2 BB49 1.2561 -2.8 0026 0.0008 1.3 9032 1.3455 -2.7 0035 0.0011 1.4 9192 1.4367 .9332 -2.6 .0047 0.0015 1.5 1.5293 -2.5 0062 0.0020 1.6 9452 1.6232 -2.4 0082 0.0027 1.7183 1.7 9554 0.0037 9641 -2.3 0107 1.8 1.8143 0139 0.0049 1.9111 -2.2 1.9 9713 9772 -2.1 0179 0.0065 2.0 2.0005 2.1 -2.0 0228 0.0005 9821 2.1065 -1.9 0287 0.0111 2.2 9861 2.2049 0359 0.0143 2.3 9893 2.3037 -1.8 0.0183 9918 -1.7 0446 2.4 2.4027 - 1.6 0548 0.0232 2.5 9938 2.5020 - 1.5 0668 0.0293 9953 2.6015 2.6 -1.4 OB08 0.0367 2.7 9965 2.7011 - 1.3 0968 0.0455 2.8 9974 2.8008 9981 -1.2 1151 0.0561 2.9 2.9005 -1.1 .1357 0.0686 3.0 9987 3.0004 - 1.0 .1587 0.0833 3.1 9990 3.1003 .1841 0.1004 3.2 9993 3.2002 -0.9 2119 0.1202 3.3 9995 3.3001 -0.8 2420 -0.7 0.1429 3.4 9997 3.4001 9998 3.5001 -0.6 2743 0.1687 3.5 -0.5 3005 0.1978 3.6000 3.6 .9998 0.2304 -0.4 3446 3.7 .9999 3.7000 0.2668 -0.3 .3821 3.8 .9999 3.8000 -0.2 4207 0.3069 3.9 1.0000 3.9000 -0.1 .4602 0.3509 4.0 1.0000 4.0000 0.0 5000 0.3989 Use Table 14.1. ACold Inc is a frozen food distributor with 10 warehouses across the country. Ivan Tory, one of the warehouse managers, wants to make sure that the inventory policies used by the warehouse are minimizing inventory while still maintaining quick delivery to ACold's customers. Since the warehouse carries hundreds of different products, Ivan decided to study one. He picked Caruso's Frozen Pizza (CFP). Average daily demand for CFPS is normally distributed with a mean of 411 and a standard deviation of 159. Since ACold orders at least one truck from their supplier each day, ACold can essentially order any quantity of CFP it wants each day. In fact, ACold's computer system is designed to implement an order-up-to policy for each product. Ivan notes that any order for CFPS arrives 5 days after the order. Suppose an order-up-to level of 2412 is used. What is the expected on-hand inventory? a. Use Table 14.1 and round to nearest integer. Suppose an order-up-to level of 2411 is used. What is the expected on-order inventory? b. Round your answer to the nearest integer. Suppose an order-up-to level of 1916 is used. What is the in-stock probability? Use c. Table 14.1. Round your answer to one decimal. a Suppose ACold wants a 0.95 in-stock probability. What should the order-up-to level be? Use Table 14.1. Round your answer to the nearest integer. TABLE 14.1 The Distribution Function, F(2), and the Inventory Function, I2), for the Standard Normal Distribution Function Fiz) Fz) Iz) I(z) -4.0 .0000 0.0000 0.1 5398 0.4509 0 0.0000 0.2 5793 0.5069 -3.9 -3.8 0001 0.0000 0.3 .6179 0.5668 -3.7 0001 0.0000 0.4 .6554 0.6304 -3.6 0002 0.0000 0.5 6915 0.6978 -3.5 0002 0.0001 0.6 7257 0.7687 -3.4 0.0001 0003 0.7 7580 0.8429 -3.3 0.0001 0.8 .7881 0.9202 0.0002 1.0004 -3.2 0007 0.9 8159 0.0003 -3.1 0010 1.0 8413 1.0833 0.0004 -3.0 0013 1.1 8643 1.1686 -2.9 0019 0.0005 1.2 BB49 1.2561 -2.8 0026 0.0008 1.3 9032 1.3455 -2.7 0035 0.0011 1.4 9192 1.4367 .9332 -2.6 .0047 0.0015 1.5 1.5293 -2.5 0062 0.0020 1.6 9452 1.6232 -2.4 0082 0.0027 1.7183 1.7 9554 0.0037 9641 -2.3 0107 1.8 1.8143 0139 0.0049 1.9111 -2.2 1.9 9713 9772 -2.1 0179 0.0065 2.0 2.0005 2.1 -2.0 0228 0.0005 9821 2.1065 -1.9 0287 0.0111 2.2 9861 2.2049 0359 0.0143 2.3 9893 2.3037 -1.8 0.0183 9918 -1.7 0446 2.4 2.4027 - 1.6 0548 0.0232 2.5 9938 2.5020 - 1.5 0668 0.0293 9953 2.6015 2.6 -1.4 OB08 0.0367 2.7 9965 2.7011 - 1.3 0968 0.0455 2.8 9974 2.8008 9981 -1.2 1151 0.0561 2.9 2.9005 -1.1 .1357 0.0686 3.0 9987 3.0004 - 1.0 .1587 0.0833 3.1 9990 3.1003 .1841 0.1004 3.2 9993 3.2002 -0.9 2119 0.1202 3.3 9995 3.3001 -0.8 2420 -0.7 0.1429 3.4 9997 3.4001 9998 3.5001 -0.6 2743 0.1687 3.5 -0.5 3005 0.1978 3.6000 3.6 .9998 0.2304 -0.4 3446 3.7 .9999 3.7000 0.2668 -0.3 .3821 3.8 .9999 3.8000 -0.2 4207 0.3069 3.9 1.0000 3.9000 -0.1 .4602 0.3509 4.0 1.0000 4.0000 0.0 5000 0.3989