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Your store sells on the average 30 lawn mowers a day with a standard deviation of 5 lawn mowers. Your store is open 310 days
Your store sells on the average 30 lawn mowers a day with a standard deviation of 5 lawn mowers. Your store is open 310 days a year. Ordering a shipment cost you $300 and it takes 4 days to arrive, Holding cost is $2 a day. You want to have a 99% reliability. You pay $120 for a lawn mower and sell it for $160. 20. At which level of inventory should you place an order? a. 123 b. 133 c. 143 d. 103 e. none of the above 21. How many lawn mowers should you order each time? a. 95 b. 77 c. 87 d. 82 e. none of the above 22. What is your daily total inventory cost? a. $236.26 b. $201.45 c. $225.82 d. $219.73 e. none of the above 23. What is the daily inventory cost per lawn mower? a. $10.07 b. $8.79 c. $6.27 d. $7.88 e. none of the above 24. What is the buffer size? a. 18 b. 21 c. 23 d. 26 e. none of the above 25. What is your annual profit? a. $263,070 b. $298,760 . $185,550 d. $241.880 e. none of the above
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