XYZ Print Inc. uses plain paper for copying needs. Weekly demand for that paper follows a normal distribution with mean 100 and standard deviation of 50 (measured in reams). Each week, a replenishment order is placed with its supplier and the order arrives one week later. All copying orders that cannot be satisfied immediately due to the lack of paper are backordered. a. What is the standard deviation of demand over two weeks? Assume demands are independent across weeks? b. Suppose it uses 306 boxes as its order-up-to level. What is its expected on-hand inventory?
XYZ Print Inc. uses plain paper for copying needs. Weekly demand for that paper follows a normal distribution with mean 100 and standard deviation of 50 (measured in reams). Each week, a replenishment order is placed with its supplier and the order arrives one week later. All copying orders that cannot be satisfied immediately due to the lack of paper are backordered. a. What is the standard deviation of demand over two weeks? Assume demands are independent across weeks? b. Suppose it uses 306 boxes as its order-up-to level. What is its expected on-hand inventory?
Purchasing and Supply Chain Management
6th Edition
ISBN:9781285869681
Author:Robert M. Monczka, Robert B. Handfield, Larry C. Giunipero, James L. Patterson
Publisher:Robert M. Monczka, Robert B. Handfield, Larry C. Giunipero, James L. Patterson
Chapter16: Lean Supply Chain Management
Section: Chapter Questions
Problem 10DQ: The chapter presented various approaches for the control of inventory investment. Discuss three...
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![Inventory Management w/ Frequent Orders:
XYZ Print Inc. uses plain paper for copying needs. Weekly demand for that paper follows
a normal distribution with mean 100 and standard deviation of 50 (measured in reams). Each week,
a replenishment order is placed with its supplier and the order arrives one week later. All copying
orders that cannot be satisfied immediately due to the lack of paper are backordered.
a. What is the standard deviation of demand over two weeks? Assume demands are
independent across weeks?
b. Suppose it uses 306 boxes as its order-up-to level. What is its expected on-hand inventory?](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fdb8ccb67-2c89-4fdf-96ff-b23177776217%2F1a392826-7c40-4446-93a7-44d176f7b865%2Fqk1hon_processed.png&w=3840&q=75)
Transcribed Image Text:Inventory Management w/ Frequent Orders:
XYZ Print Inc. uses plain paper for copying needs. Weekly demand for that paper follows
a normal distribution with mean 100 and standard deviation of 50 (measured in reams). Each week,
a replenishment order is placed with its supplier and the order arrives one week later. All copying
orders that cannot be satisfied immediately due to the lack of paper are backordered.
a. What is the standard deviation of demand over two weeks? Assume demands are
independent across weeks?
b. Suppose it uses 306 boxes as its order-up-to level. What is its expected on-hand inventory?
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