Cyber chemicals uses liquid nitrogen on regular basis

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Reference no: EM132193387

Cyber Chemicals uses liquid nitrogen on a regular basis. Average daily demand is normally distributed with a mean of 178 gallons and a standard deviation of 45. Cyber operates six days a week and orders from its supplier once each week. The supplier takes one week to deliver Cyber’s order.

a. Suppose it uses an order-up-to level of 2200. What is its average order quantity?

b. Suppose it uses an order-up-to level of 2480. What is its expected on-hand inventory?

c. Suppose it uses an order-up-to level of 2600. What is its expected on-order inventory?

d. Suppose it uses an order-up-to level of 2697. What is its in-stock probability?

e. Suppose it uses an order-up-to level of 2400. What is its stockout probability?

f. Suppose it wants a .945 in-stock probability. What should its order-up-to level be?

Reference no: EM132193387

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