PA 11-2 Anvil\'s Works requires on average 2,800 tons of aluminum... Anvit\'s Wo
ID: 375528 • Letter: P
Question
PA 11-2 Anvil's Works requires on average 2,800 tons of aluminum... Anvit's Works requires on average 2,800 tons of aluminum each week with a standard deviation of 1,000 tons. The lead time to receive their orders is 10 woeks. The holding cost for 1 tor c aluminum for one week is $11. They operate with a 0.98 in-stock probability 28,000 tons a. On average how many tons do they have on order? b. On average how many tons do they have on hand? c.If their average Inventory were 5,000 tons, what would be their averagldngcost per tons 56,000 per week week? Round your answer to 2 decimal places.) d. I their average inventory were 10,000 units, what would be their average holding cost per ton of aluminum demanded each week? 39.28 per ton Round your answer to 4 decimal places.) Suppose their on-hand inventory is 4,975 tons on average. they offer to their customers? What in-stock probability doExplanation / Answer
b) The company operates with a 0.98 in stock probability
Average tons on hand = (0.98 * 28,000 ) / 10
Average tons on hand = 2744 tons
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e) D = average on hand inventory x average lead time
Average lead time = Demand / average on hand inventory
Average lead time = 28,000 / 4975
Average lead time = 5.62814
In stock probability = (4975 x average lead time) / 28,000
In stock probability = (4975 x 5.62814) / 28,000
In stock probability = 1
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