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Lieutenant Commander Data is planning to make his monthly (every 30 days) trek to Gamma Hydra City to pick up a supply of isolinear chips. The trip will take Data about five days. Before he leaves, he calls in the order to the GHC Supply Store. He uses chips at an average rate of two per day (seven days per week) with a standard deviation of demand of one per day. He needs a 95 percent service probability.
a. If he currently has 20 chips in inventory, how many should he order? (Use Excel's NORMSINV() function to find the correct critical value for the given α-level. Do not round intermediate calculations. Round "z" value to 2 decimal places and final answer to the nearest whole number.)
Number of chips
b. What is the most he will ever have to order? (Use Excel's NORMSINV() function to find the correct critical value for the given α-level. Do not round intermediate calculations. Round "z" value to 2 decimal places and final answer to the nearest whole number.)
Maximum order quantity
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