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Demand for Caruso's Frozen Pizza (CFP) is normally distributed. The demand for CFP averages 400 per day with a standard deviation of 200. Weekly demand (5 days) averages 2,000 units with a standard deviation of 555. A Cold can essentially order any quantity of CFP it wants each day. Any order for CFPs arrives 4 days after the order. Further, it costs ACold $0.01 per day to keep a CFP in inventory, while a back order is estimated to cost ACold $0.45.
A. Suppose the base stock level 2,800 is chosen. What fraction of customer demands is met immediately from stock?
B. Suppose the base stock level 2,800 is chosen. What is the average amount of inventory on order?
C. Suppose the base stock level 2,800 is chosen. What is the annual holding cost? (Assume 260 days per year)
D. What base stock level minimizes inventory while maintaining a 97 percent in-stock probability
What are the primary external organizational considerations for the development of a strategic plan? Which consideration is the most important? Why?
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Routing Meaning and Definition Routing is the first but the important and difficult task of the production control. Routing means determination of path or route on whic
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A small building contractor has recently experienced two successive years in which work opportunities exceeded the firm's capacity. The contractor must now make a decision on capac
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