Answer Happy

Use Table 14.1 ACold Inc. is a frozen-food distributor with 10 warehouses across the country. Ivan Tory, one of the warehouse managers, wants to make sure that the inventory policies used by the warehouse are minimizing nventory while still maintaining quick delivery to ACold's customers. Because the warehouse carries hundreds of different products, Ivan decided to study one. He picked Caruso's Frozen Pizza (CFP). Demand for CFPs averages 383 per day with a standard deviation of 160. Because ACold orders at least one truck from its supplier each day, ACold can essentially order any quantity of CFP it wants each day. In fact, ACold's computer system is designed to mplement an order-up-to policy for each product. Ivan notes that any order for CFPs arrives five days after the order Use Table 14.1 and round to nearest integer a. Suppose an order-up-to level of 2442 is used. What is the expected on-hand Inventory? Round your answer to the nearest integer b. Suppose an order-up-to level of 2533 is used. What is the expected on-order inventory? Use Table 14.1. Round your answer to one decimal. c. Suppose an order-up-to level of 1917 is used. What is the in-stock probability? Use Table 14.1. Round your answer to the nearest integer. d. Suppose ACold wants a 0.92 in-stock probability. What should the order-up-to level be? 5 of 7 < Prey Next > Be