What should the target level be if the probability of stocking out is to be no more than 5%?

In preparing to place an order the clerk checks the inventory level for the ringbinders finds 4 in stock. How many should the clerk order?

Assuming a 52 week yeaar what is the annual ordering cost?

The supply of 5 inch ring binders at a college kstore is reordered every week. It takes one week for the shipment to arrive. Demand for the ring binders averages 6 per week and the standard deviation of demand is 2 per week. The demand is normally distributed. The cost place an order is $10 and ring binders $15. The inventory holding charge is 15% per ring binder. cost points) a. What should the target level be ifthe probability of stocking out is to be no more than 5%? point b. In preparing to place an order the clerk checks the inventory level for the ringbinders and finds 4 in stock. How many should the clerk order? (2 points) c. Assuming a 52 week year what is the annual ordering cost? (2. p