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Safari Bar and Restaurant uses 5,000 quart bottles of an imported wine each year. The effervescent wine costs $5 per bottle and is served in whole bottles only since it loses its bubbles quickly. The manager figures that it costs $10 each time an order is placed, and holding costs are 30 percent of the purchase price per bottle per year. It takes four weeks for an order to arrive. Weekly demand has a Normal distribution with an average of 100 bottles and a standard deviation of 30 bottles. Safari Bar and Restaurant closes two weeks per year. The manager would like to use an inventory system that minimizes inventory cost and will satisfy 90 percent of his customers who order this wine. Round your answers to the nearest integer. What is the economic order quantity for the manager to order? OA. 258 bottles OB. 500 bottles OC. 316 bottles O D. 408 bottles What is the expected demand during lead-time? OA. 200 bottles OB. 400 bottles OC. 300 bottles OD. 100 bottles

Safari Bar and Restaurant uses 5,000 quart bottles of an imported wine each year. The effervescent wine costs $5 per bottle and is served in whole bottles only since it loses its bubbles quickly. The manager figures that it costs $10 each time an order is placed, and holding costs are 30 percent of the purchase price per bottle per year. It takes four weeks for an order to arrive. Weekly demand has a Normal distribution with an average of 100 bottles and a standard deviation of 30 bottles. Safari Bar and Restaurant closes two weeks per year. The manager would like to use an inventory system that minimizes inventory cost and will satisfy 90 percent of his customers who order this wine. Round your answers to the nearest integer. What is the economic order quantity for the manager to order? OA. 258 bottles OB. 500 bottles OC. 316 bottles O D. 408 bottles What is the expected demand during lead-time? OA. 200 bottles OB. 400 bottles OC. 300 bottles OD. 100 bottles

Practical Management Science
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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Safari Bar and Restaurant uses 5,000 quart bottles of an imported wine each year. The effervescent wine costs $5 per bottle and is served in whole bottles only since it loses its bubbles quickly. The manager figures that it costs $10 each time an order is placed, and holding costs are 30 percent of the purchase price per bottle per year. It takes four weeks for an order to arrive. Weekly demand has a Normal distribution with an average of 100 bottles and a standard deviation of 30 bottles. Safari Bar and Restaurant closes two weeks per year. The manager would like to use an inventory system that minimizes inventory cost and will satisfy 90 percent of his customers who order this wine. Round your answers to the nearest integer. What is the economic order quantity for the manager to order? A. 258 bottles B. 500 bottles C. 316 bottles D. 408 bottles What is the expected demand during lead-time? A. 200 bottles B. 400 bottles C. 300 bottles D. 100 bottles
Transcribed Image Text:Safari Bar and Restaurant uses 5,000 quart bottles of an imported wine each year. The effervescent wine costs $5 per bottle and is served in whole bottles only since it loses its bubbles quickly. The manager figures that it costs $10 each time an order is placed, and holding costs are 30 percent of the purchase price per bottle per year. It takes four weeks for an order to arrive. Weekly demand has a Normal distribution with an average of 100 bottles and a standard deviation of 30 bottles. Safari Bar and Restaurant closes two weeks per year. The manager would like to use an inventory system that minimizes inventory cost and will satisfy 90 percent of his customers who order this wine. Round your answers to the nearest integer. What is the economic order quantity for the manager to order? A. 258 bottles B. 500 bottles C. 316 bottles D. 408 bottles What is the expected demand during lead-time? A. 200 bottles B. 400 bottles C. 300 bottles D. 100 bottles
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