z value
Associated service level
1.28
90%
1.65
95%
2.05
98%
2.33
99%
3.08
99.9%
llah's Organic Pet Shop sells bags of cedar chips for pet
bedding or snacking (buyer's choice). The supplier has
offered Ollah the following terms:
Order
1−260
bags, and the price is
$9.25
a bag.
Order
261
or more bags, and the price is
$6.50
a bag.
Annual demand is
560,
fixed ordering costs are
$20
per order, and the per-bag holding cost is estimated
to be around
$19
per year.
LOADING...
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Part 2
a. The economic order quantity for the bags is
3434.
(Enter your response rounded to the nearest
whole number.)
Part 3
b. Ollah should order
enter your response here
bags at a time to take advantage of the lower cost per unit.
(Enter your response rounded to the nearest
whole number.)
Part 4
c. Suppose the lead time for bags is a constant
2.2
weeks, and average weekly demand is
11.8
bags, with a standard deviation of
4.2
bags. If Ollah wants to maintain a
95%
service level, what should her reorder point be?
The reorder point is
enter your response here
bags. (Enter your response rounded up to the nearest
whole number.)
z value Associated service level 1.28 90% 1.65 95% 2.05 98% 2.33 99% 3.08 99.9% llah's Organic Pet Shop sells bags
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answerhappygod
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z value Associated service level 1.28 90% 1.65 95% 2.05 98% 2.33 99% 3.08 99.9% llah's Organic Pet Shop sells bags
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