An item has normally distributed demand with mean 100 and standard deviation of 50. They order week with one week lead time. Backorders are allowed. A) With an order-up-to level of 300, on-hand inventory of 200 and on-order inventory of 60, how much will be ordered this week? B) What is the standard deviation of demand over 2 weeks? C) If it uses 306 as its order-up-to level, what is its expected on-hand inventory? D) Using part C data, what is nits expected on-order inventory? E) If it uses 278 as its order-up-to level, what is its in-stock probability? F) If it uses 334 as its order-up-to level, what is its stockout probability? G) If it wants in-stock probability of 0.998, what order-up-to level should it use?
An item has
A) With an order-up-to level of 300, on-hand inventory of 200 and on-order inventory of 60, how much will be ordered this week?
B) What is the standard deviation of demand over 2 weeks?
C) If it uses 306 as its order-up-to level, what is its expected on-hand inventory?
D) Using part C data, what is nits expected on-order inventory?
E) If it uses 278 as its order-up-to level, what is its in-stock probability?
F) If it uses 334 as its order-up-to level, what is its stockout probability?
G) If it wants in-stock probability of 0.998, what order-up-to level should it use?
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