The daily demand for a component at a hardware store is normally distributed, with an average of 100 and a standard deviation of 10 units. The store manager is willing to accept a risk of stockout 3% of the time during the lead time, which is constant at 6 days. Answer the following questions. Write your final answer only (without intermediate steps) for the fill-in-the-blank questions. Question 10 (2 points) The service level that the store manager wants to maintain = A . Use 2-decimal accuracy for the final answer, e.g., 0.12, when necessary. Question 11 (2 points) The appropriate value of Z (i.e., the number of standard normal deviations) = A . Use 2-decimal accuracy for the final answer, e.g., 0.12, when necessary. Question 12 (2 points) A Safety stock = answer (if it is not an integer) to the nearest integer. units. Round the final Question 13 (2 points) Reorder point = A units. Round the final answer (if it is not an integer) to the nearest integer.

Respuesta :

The service level that the store manager wants to maintain = 0.97. This is because 3% of the time during the lead time, the store would be willing to accept a stockout. This corresponds to a service level of 97%.

The appropriate value of Z (i.e., the number of standard normal deviations) = 1.65. This can be calculated using the formula Z = (Service Level - 0.5) / (1 - Service Level).

A Safety stock = 160 units. This can be calculated using the formula Safety Stock = Z * Standard Deviation * Square Root of Lead Time.

Reorder point = 360 units. This can be calculated using the formula Reorder Point = Average Demand * Lead Time + Safety Stock.

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