No written by hand solution The questions below refer to the following SAME paragraph:   Suppose a retailer Mojo, holds safety stock for an item to accommodate a 98% service level with uncertain demand. There are two supply options: Supplier X taking 5 days to deliver replenishments, and Supplier Y taking 3 days to replenish. Both suppliers charge the same price for the item.   Ignoring differences in fixed order costs, the retailer should choose:   Group of answer choices   Supplier X   Option Y only if the critical ratio is less than 0.9   Option X only if the critical ratio is greater than 0.9   Supplier Y

Practical Management Science
6th Edition
ISBN:9781337406659
Author:WINSTON, Wayne L.
Publisher:WINSTON, Wayne L.
Chapter2: Introduction To Spreadsheet Modeling
Section: Chapter Questions
Problem 20P: Julie James is opening a lemonade stand. She believes the fixed cost per week of running the stand...
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The questions below refer to the following SAME paragraph:

 

Suppose a retailer Mojo, holds safety stock for an item to accommodate a 98% service level with uncertain demand. There are two supply options: Supplier X taking 5 days to deliver replenishments, and Supplier Y taking 3 days to replenish. Both suppliers charge the same price for the item.

 

Ignoring differences in fixed order costs, the retailer should choose:

 

Group of answer choices

 

Supplier X

 

Option Y only if the critical ratio is less than 0.9

 

Option X only if the critical ratio is greater than 0.9

 

Supplier Y

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