3. Weekly demand for Motorola cell phones at a Best Buy store is normally distributed, with a mean of 300 and a standard deviation of 200. Motorola takes two weeks to supply a Best Buy order. Best Buy is targeting a CSL of 95 percent and monitors its inventory continuously. How much safety inven- tory of cell phones should Best Buy carry? What should its ROP be?

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How do I do question 3?

**Exercises**

1. Weekly demand for smartphones at an Apple store is normally distributed, with a mean of 500 and a standard deviation of 300. Foxconn, the assembler, takes four weeks to supply an Apple order. Apple is targeting a CSL of 95 percent and monitors its inventory continuously. How much safety inventory of cell phones should the Apple store carry? What should its ROP be?

2. Weekly demand for jeans at a Gap store is normally distributed, with a mean of 100 and a standard deviation of 50. The supply plant takes three weeks to supply a Gap order. The store manager monitors its inventory continuously and reorders jeans when the available inventory drops below 350. How much safety stock does the store carry? What CSL does the store achieve? If the store manager wants to target a CSL of 95 percent, how much safety inventory of jeans should the store carry? What should its ROP be?

3. Weekly demand for Motorola cell phones at a Best Buy store is normally distributed, with a mean of 300 and a standard deviation of 200. Motorola takes two weeks to supply a Best Buy order. Best Buy is targeting a CSL of 95 percent and monitors its inventory continuously. How much safety inventory of cell phones should Best Buy carry? What should its ROP be?

4. Reconsider the Best Buy store in Exercise 3. The store manager has decided to follow a periodic review policy to manage inventory of cell phones. She plans to order every three weeks. Given a desired CSL of 95 percent, how much safety inventory should the store carry? What should its OUL be?
Transcribed Image Text:**Exercises** 1. Weekly demand for smartphones at an Apple store is normally distributed, with a mean of 500 and a standard deviation of 300. Foxconn, the assembler, takes four weeks to supply an Apple order. Apple is targeting a CSL of 95 percent and monitors its inventory continuously. How much safety inventory of cell phones should the Apple store carry? What should its ROP be? 2. Weekly demand for jeans at a Gap store is normally distributed, with a mean of 100 and a standard deviation of 50. The supply plant takes three weeks to supply a Gap order. The store manager monitors its inventory continuously and reorders jeans when the available inventory drops below 350. How much safety stock does the store carry? What CSL does the store achieve? If the store manager wants to target a CSL of 95 percent, how much safety inventory of jeans should the store carry? What should its ROP be? 3. Weekly demand for Motorola cell phones at a Best Buy store is normally distributed, with a mean of 300 and a standard deviation of 200. Motorola takes two weeks to supply a Best Buy order. Best Buy is targeting a CSL of 95 percent and monitors its inventory continuously. How much safety inventory of cell phones should Best Buy carry? What should its ROP be? 4. Reconsider the Best Buy store in Exercise 3. The store manager has decided to follow a periodic review policy to manage inventory of cell phones. She plans to order every three weeks. Given a desired CSL of 95 percent, how much safety inventory should the store carry? What should its OUL be?
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