An electronic manufacturer in San Francisco receives its motherboards from a supplier in Hong Kong. The lead time for orders is 3 weeks. One of their board costs $19 per unit and the holding cost for this board is $0.6 per week. They manage their inventory to achieve a 98 percent in-stock probability. Weekly demand is for 200 boards with a standard deviation of 150. Use the following table when needed: In-stock probability 99% 98% 97% 96% Z value 2.33 2.05 1.88 1.75 a. How many boards do they have on on order on average? boards b. How many boards do they have on hand on average? boards c. For this board what is the total holding cost incurred per week? per week (Round your answer to 2 decimal places.) d. What is the holding cost they incur per board? per board

Practical Management Science
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Author:WINSTON, Wayne L.
Publisher:WINSTON, Wayne L.
Chapter2: Introduction To Spreadsheet Modeling
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An electronic manufacturer in San Francisco receives its motherboards from a supplier in Hong Kong. The lead time for orders is 3
weeks. One of their board costs $19 per unit and the holding cost for this board is $0.6 per week. They manage their inventory to
achieve a 98 percent in-stock probability. Weekly demand is for 200 boards with a standard deviation of 15O.
Use the following table when needed:
In-stock probability
99%
98%
97%
96%
Z value
2.33
2.05
1.88
1.75
a. How many boards do they have on on order on average?
boards
b. How many boards do they have on hand on average?
boards
c. For this board what is the total holding cost incurred per week?
per week
(Round your answer to 2 decimal places.)
d. What is the holding cost they incur per board?
per board
Transcribed Image Text:An electronic manufacturer in San Francisco receives its motherboards from a supplier in Hong Kong. The lead time for orders is 3 weeks. One of their board costs $19 per unit and the holding cost for this board is $0.6 per week. They manage their inventory to achieve a 98 percent in-stock probability. Weekly demand is for 200 boards with a standard deviation of 15O. Use the following table when needed: In-stock probability 99% 98% 97% 96% Z value 2.33 2.05 1.88 1.75 a. How many boards do they have on on order on average? boards b. How many boards do they have on hand on average? boards c. For this board what is the total holding cost incurred per week? per week (Round your answer to 2 decimal places.) d. What is the holding cost they incur per board? per board
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