Reference no: EM132725633
Anvils Works' requires, on average, 2,600 tons of aluminum each week, with a standard deviation of 1,000 tons. The lead time to receive its orders is 9 weeks. The holding cost for one ton of aluminum for one week is $12. It operates with a 0.99 in-stock probability
A. On average how many tons does it have on order?
B. On average how many tons does it have on hand?
C. If its average inventory was 13,500 tons, what would be its average holding cost per week?
D. if its average inventory was 7,000 tons, what would be its average holding cost per ton of Aluminum?
E. Suppose its on-hand inventory is 5,300 tons, on average what in-stock probability does it offer to its customers?
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