PA 14-5 A Cold Inc is a frozen food distributor with... 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 387 and a standard deviation of 152. 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 4 days after the order. a. b. C. Suppose an order-up-to level of 2479 is used. What is the expected on-hand inventory? Use Table 14.1 and round to nearest integer. Suppose an order-up-to level of 2489 is used. What is the expected on-order inventory? Round your answer to the nearest integer. Suppose an order-up-to level of 2089 is used. What is the in-stock probability? Use Table 14.1. Round your answer to one decimal. Suppose ACold wants a 0.95 in-stock probability. What should the order-up-to level be? d. Use Table 14.1. Round your answer to the nearest integer.
PA 14-5 A Cold Inc is a frozen food distributor with... 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 387 and a standard deviation of 152. 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 4 days after the order. a. b. C. Suppose an order-up-to level of 2479 is used. What is the expected on-hand inventory? Use Table 14.1 and round to nearest integer. Suppose an order-up-to level of 2489 is used. What is the expected on-order inventory? Round your answer to the nearest integer. Suppose an order-up-to level of 2089 is used. What is the in-stock probability? Use Table 14.1. Round your answer to one decimal. Suppose ACold wants a 0.95 in-stock probability. What should the order-up-to level be? d. Use Table 14.1. Round your answer to the nearest integer.
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...
Related questions
Question
Transcribed Image Text:PA 14-5 A Cold Inc is a frozen food distributor with...
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 387 and a standard deviation of 152. 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 4 days after the order.
Suppose an order-up-to level of 2479 is used. What is the expected on-hand inventory?
a. Use Table 14.1 and round to nearest integer.
b.
C.
Suppose an order-up-to level of 2489 is used. What is the expected on-order inventory?
Round your answer to the nearest integer.
Suppose an order-up-to level of 2089 is used. What is the in-stock probability? Use
Table 14.1. Round your answer to one decimal.
Suppose ACold wants a 0.95 in-stock probability. What should the order-up-to level be?
d.
Use Table 14.1. Round your answer to the nearest integer.
000
Transcribed Image Text:TABLE 14.1 The Distribution Function, F(z), and the Inventory Function, I(z), for the Standard Normal Distribution Function
|(z)
0.0000
0.0000
0.0000
0.0000
0.0000
0.0001
0.0001
0.0001
0.0002
0.0003
0.0004
0.0005
0.0008
0.0011
0.0015
0.0020
0.0027
0.0037
0.0049
0.0065
0.0085
0.0111
0.0143
0.0183
0.0232
0.0293
0.0367
0.0455
0.0561
0.0686
0.0833
0.1004
0.1202
0.1429
0.1687
0.1978
0.2304
0.2668
0.3069
0.3509
0.3989
Z
-4.0
-3.9
-3.8
-3.7
-3.6
-3.5
-3.4
-3.3
-3.2
-3.1
-3.0
-2.9
-2.8
-2.7
-2.6
-2.5
-2.4
-2.3
-2.2
-2.1
-2.0
-1.9
-1.8
-1.7
-1.6
-1.5
-1.4
-1.3
-1.2
-1.1
-1.0
-0.9
-0.8
-0.7
-0.6
-0.5
-0.4
-0.3
-0.2
-0.1
0.0
F(z)
.0000
.0000
.0001
.0001
.0002
.0002
.0003
.0005
.0007
.0010
.0013
.0019
.0026
.0035
.0047
.0062
.0082
.0107
.0139
.0179
.0228
.0287
.0359
.0446
.0548
.0668
.0808
.0968
.1151
.1357
.1587
.1841
.2119
.2420
.2743
.3085
.3446
.3821
.4207
.4602
.5000
Z
0.1
0.2
0.3
0.4
0.5
0.6
0.7
0.8
0.9
1.0
1.1
1.2
1.3
1.4
1.5
1.6
1.7
1.8
1.9
2.0
2.1
2.2
2.3
2.4
2.5
2.6
2.7
2.8
2.9
3.0
3.1
3.2
3.3
3.4
3.5
3.6
3.7
3.8
3.9
4.0
F(z)
.5398
.5793
.6179
.6554
.6915
.7257
.7580
.7881
.8159
.8413
.8643
.8849
.9032
.9192
.9332
.9452
.9554
.9641
.9713
.9772
.9821
.9861
.9893
.9918
.9938
.9953
.9965
.9974
.9981
.9987
.9990
.9993
.9995
.9997
.9998
.9998
.9999
.9999
1.0000
1.0000
I(z)
0.4509
0.5069
0.5668
0.6304
0.6978
0.7687
0.8429
0.9202
1.0004
1.0833
1.1686
1.2561
1.3455
1.4367
1.5293
1.6232
1.7183
1.8143
1.9111
2.0085
2.1065
2.2049
2.3037
2.4027
2.5020
2.6015
2.7011
2.8008
2.9005
3.0004
3.1003
3.2002
3.3001
3.4001
3.5001
3.6000
3.7000
3.8000
3.9000
4.0000
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
This is a popular solution!
Trending now
This is a popular solution!
Step by step
Solved in 2 steps
Recommended textbooks for you
Practical Management Science
Operations Management
ISBN:
9781337406659
Author:
WINSTON, Wayne L.
Publisher:
Cengage,
Operations Management
Operations Management
ISBN:
9781259667473
Author:
William J Stevenson
Publisher:
McGraw-Hill Education
Operations and Supply Chain Management (Mcgraw-hi…
Operations Management
ISBN:
9781259666100
Author:
F. Robert Jacobs, Richard B Chase
Publisher:
McGraw-Hill Education
Practical Management Science
Operations Management
ISBN:
9781337406659
Author:
WINSTON, Wayne L.
Publisher:
Cengage,
Operations Management
Operations Management
ISBN:
9781259667473
Author:
William J Stevenson
Publisher:
McGraw-Hill Education
Operations and Supply Chain Management (Mcgraw-hi…
Operations Management
ISBN:
9781259666100
Author:
F. Robert Jacobs, Richard B Chase
Publisher:
McGraw-Hill Education
Purchasing and Supply Chain Management
Operations Management
ISBN:
9781285869681
Author:
Robert M. Monczka, Robert B. Handfield, Larry C. Giunipero, James L. Patterson
Publisher:
Cengage Learning
Production and Operations Analysis, Seventh Editi…
Operations Management
ISBN:
9781478623069
Author:
Steven Nahmias, Tava Lennon Olsen
Publisher:
Waveland Press, Inc.