Statistics Solutions

[Solved] The Georgetown Grill and Bax uses 5,000 bottles of an imported wine each year. This wine costs $12 per bottle and each order costs $30 to place.

Question: The Georgetown Grill and Bax uses 5,000 bottles of an imported wine each year. This wine costs $12 per bottle and each order costs $30 to place. Holding costs are \(20 \%\) per year of the puxchase price. Weekly demand is normally distributed with a mean of 100 bottles (the bar is closed two weeks in July) and a standard deviation of 30 bottles. Lead time is two weeks. The owner would like to be \(95 \%\) sure that there is no stockout in any given inventory cycle.

  1. What is the optimal reorder quantity?
  2. What is the reorder level to be used for placing orders?

Price: $2.99
Solution: The downloadable solution consists of 2 pages
Deliverable: Word Document


∴ Other downloads you may be interested in ∴

log in to your account

Forgot password?
Don't have a membership account?
REGISTER

reset password

Back to
log in

sign up

Back to
log in