1) The demand during the lead-time is normally distributed with a mean of 50 and
ID: 3318348 • Letter: 1
Question
1) The demand during the lead-time is normally distributed with a mean of 50 and a standard deviation S pointh mpany wishes to maintain a 90 percent service level, how much safety stock should be hel 2) Candy Incorporated stocks bubble gum game cards, an item that has a normally distributed demand during the reorder period with a mean of 16 dozen boxes and a standard deviation of four dozen boxes. If it is desirable to experience a stockout only 10 percent of the time, what is the appropriate safety stock? ( points) 3) The annual demand for a product is 2,100 units. The company orders 200 units each time an order is placed. The lead-time is 6 days. There are 250 working days per year. If the reorder point is 50, what safety stock are they using? (5 points) 4) Enrollment in a particular class for the last four semesters has been 120, 136, 1115, and 165 (listed fro oldest to most recent). The best forecast of enrollment next semester, based on a three-semester moving verage, would be (5 points)Explanation / Answer
QUESTION 1.
the PDF of normal distribution is = 1/ * 2 * e ^ -(x-u)^2/ 2^2
standard normal distribution is a normal distribution with a,
mean of 0,
standard deviation of 1
equation of the normal curve is ( Z )= x - u / sd ~ N(0,1)
mean ( u ) = 50
standard Deviation ( sd )= 6
P ( Z < x ) = 0.9
Value of z to the cumulative probability of 0.9 from normal table is 1.281552
P( x-u/s.d < x - 50/6 ) = 0.9
That is, ( x - 50/6 ) = 1.281552
--> x = 1.281552 * 6 + 50 = 57.689309
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