Determine the number of drives the manager

Assignment Help Operation Management

Reference no: EM1389007

Retail Store sells wireless external hard drives at discount prices. If the store does not have a drive in stock when a customer wants to buy one, it will lose the sale because the customer will purchase a drive from one of the many competitors. The problem is that the cost of renting warehousing space to keep enough drives in inventory to meet all demand is excessively high. The manager has determined that if 85% of customer demand for drives can be met, then the combined cost of lost sales and inventory will be minimized. The manager has estimated that monthly demand for drives is normally distributed with a mean of 350 drives and a variance of 225.

a Determine the number of drives the manager should order each month in order to meet 85% of customer demand.

b What will happen if the manager orders 380 drives?

Reference no: EM1389007

Questions Cloud

Suspecting the manufacturer-incorrect in its label claim : Looking at the data, you suspect that the manufacturer is incorrect in its label claim. You want to perform hypothesis testing to prove or disprove it.

Self-regulating mechanism which provide maximum consumer : "Theoretically, the market is an automatic, competitive, self-regulating mechanism which provides for the maximum consumer welfare also which best regulates the use of the factors of production." Explain.

How far away to the persons an image appear : End A of the bar AB rests on a frictionless horizontal surface, and end B is hinged. A horizontal force vec F of magnitude 107 {rm N} is exerted on end A. You can ignore the weight of the bar. What is the vertical component of the force exerted by..

Structure and functions of keratin : Explain the structure and functions of keratin. Does every layer of the epidermic contain keratin? Why or why not? Please provide a justification for your answer.

Determine the number of drives the manager : Determine the number of drives the manager should order each month in order to meet 85% of customer demand.

Illustrate what could bp have learned from exxon : Illustrate what could BP have learned from Exxon that would have limited the damage to their reputation? Do you think BP has done anything right from a Public Relations also ethical standpoint? "

Program to calculate sum of squares using for loop : Given int variables k and total that have already been declared, use for loop to calculate sum of squares of first 50 counting numbers, and store this value in total.

Americans of mexican ancestry-hypothesis test : a) Set up the null and alternative hypotheses, and perform the hypothesis test. b) Does the jury selection system appear to be fair?

Identify also discuss the main globalization opportunity : Identify also discuss the main globalization opportunity or challenge impacting your project organization. Illustrate what must be done to strengthen the global position of your organization's brand?

User Account

All Pages