Question

Problem 2. A product's demand in each period follows a normal distribution with mean of 60 and standard deviation of 10. The lead time for this product is 3 periods. a. The order-up-to level is 250. What is the expected on-order inventory? b. The order-up-to level is 250. What is the expected on-hand inventory? c. The order-up-to level is 250. What is the probability of stock-out (please only fill in number, for example, fill in 0.15 for 15%, please include the zero before the decimal point)? d. To make sure there is only 1% of chance of running out of stock, what should be the order-up-to inventory level (Choose larger number if there is no exact number in the table)? e. For the order-up-to level from Question d., what is the expected on-order inventory? f. For the order-up-to level from Question d., what is the expected on-hand inventory?

          Problem 2. A product's demand in each period follows a normal distribution with mean of 60 and standard deviation of 10. The lead time for this product is 3 periods. 
a. The order-up-to level is 250. What is the expected on-order inventory? 
b. The order-up-to level is 250. What is the expected on-hand inventory? 
c. The order-up-to level is 250. What is the probability of stock-out (please only fill in number, for example, fill in 0.15 for 15%, please include the zero before the decimal point)? 
d. To make sure there is only 1% of chance of running out of stock, what should be the order-up-to inventory level (Choose larger number if there is no exact number in the table)? 
e. For the order-up-to level from Question d., what is the expected on-order inventory? 
f. For the order-up-to level from Question d., what is the expected on-hand inventory?

Problem 2. A product's demand in each period follows a normal distribution with mean of 60 and standard deviation of 10. The lead time for this product is 3 periods.
a. The order-up-to level is 250. What is the expected on-order inventory?
b. The order-up-to level is 250. What is the expected on-hand inventory?
c. The order-up-to level is 250. What is the probability of stock-out (please only fill in number, for example, fill in 0.15 for 15%, please include the zero before the decimal point)?
d. To make sure there is only 1% of chance of running out of stock, what should be the order-up-to inventory level (Choose larger number if there is no exact number in the table)?
e. For the order-up-to level from Question d., what is the expected on-order inventory?
f. For the order-up-to level from Question d., what is the expected on-hand inventory?

Added by Kristina P.

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