Answered: a) Determine the safety stock and order…

Practical Management Science

6th Edition

ISBN:9781337406659

Author:WINSTON, Wayne L.

Publisher:WINSTON, Wayne L.

Chapter2: Introduction To Spreadsheet Modeling

Section: Chapter Questions

Problem 20P: Julie James is opening a lemonade stand. She believes the fixed cost per week of running the stand...

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Transcribed Image Text:stly sunny ● Tas three parts (a, b, and c). You may need to scroll the screen down and navigate left and right to see the whole problem. Clearly label your parts when answering. You are allowed a Maximum of 3 Files for this problem. Must use a pen to answer. Show all calculations/results to FOUR PLACES AFTER THE DECIMAL POINT (except when all succeeding digits are zeros). Must Show all calculations/steps. Failure to do so will result in a score of "0" even final answer is correct. York Drug Store (YDS) stocks a popular brand of sunscreen. The average demand for the sunscreen is 13 bottles per day, with a standard deviation of 2.30 bottles. A vendor for the sunscreen producer checks the drugstore stock every 45 days, and during a particular visit the drugstore had 16 bottles in stock. Lead time to receive an order is 4 days. The drugstore has a goal of a 96.15 percent probability of not stocking out for this product. a) Determine the safety stock and order size for this order period. (Round to nearest integer) b) Suppose that YDS manager wants to increase the safety stock of this item by 25 percent. If she does so, what will be the new cycle service level? c) If only 3 percent risk of stockout is acceptable, determine the order size when the drugstore has no stock on hand. (Round to nearest integer) When you completed a problem, upload the solution immediately before moving to the next problem. If this is your last problem, then submit the exam. Remember: Ensure your image/s is/are uploaded BEFORE the last minute. During the last minute of the exam, it is possible that your file/s attaching/uploading process may not be completed and time might be over resulting in the exam being closed. It is your responsibility to make sure your solution file/s are uploaded on time, failure to do so may result in your answers not being recorded or marked O Search acer G

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