4. [10/20 Points] DETAILS PREVIOUS ANSWERS ASWMSCI15 10.E.027. MY NOTES A perishable dairy product is ordered daily at a

[answerhappygod]

4 10 20 Points Details Previous Answers Aswmsci15 10 E 027 My Notes A Perishable Dairy Product Is Ordered Daily At A 1 (55.8 KiB) Viewed 37 times

4. [10/20 Points] DETAILS PREVIOUS ANSWERS ASWMSCI15 10.E.027. MY NOTES A perishable dairy product is ordered daily at a particular supermarket. The product costs $1.17 per unit and sells for $1.55 per unit. If units are unsold at the end of the day, the supplier takes them back at a rebate of $1 per unit. Assume that daily demand is approximately normally distributed with μ = 150 and σ = 30. (a) What is your recommended daily order quantity for the supermarket? (You may need to use the appropriate appendix table or technology to answer this question. Round your answer to the nearest integer.) Q* = 165 (b) What is the probability that the supermarket will sell all the units it orders? (Round your answer to four decimal places.) P(stockout) = .6909 X What happens to the supermarket order quantity as the rebate is reduced? The higher rebate increases ✓ (c) In problems such as these, why would the supplier offer a rebate as high as $1? For example, why not offer a nominal rebate? Find the recommended order quantity at 25¢ per unit. (Round your answer to the nearest integer.) Q* = 93 X Need Help? Read It 5. [-/20 Points] DETAILS ASK YOUR TEACHER ASWMSCI15 10.E.031. A product with an annual demand of 1,000 units has C = $23.50 and C = $7. The demand exhibits some variability such that the lead-time demand follows a normal probability distribution with μ = 25 and σ = 5. (a) What is the recommended order quantity? (Round your answer to the nearest integer.) reorder point safety stock the quantity that the supermarket should order. PRACTICE ANOTHER MY NOTES Need Help? (b) What are the reorder point and safety stock if the firm desires at most a 4% probability of stock-out on any given order cycle? (You may need to use the appropriate appendix table or technology to answer this question. Round your answers to the nearest integer.) Read It ASK YOUR TEACHER PRACTICE ANOTHER (c) If a manager sets the reorder point at 30, what is the probability of a stock-out on any given order cycle? (Round your answer to four decimal places.) How many times would you expect a stock-out during the year if this reorder point were used? (Round your answer to the nearest integer.)