Calculate the optimal cycle service level

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Reference no: EM132234042

Demand for World Series t-shirts is normally distributed with mean 35,000 and standard deviation 5,000. T-shirts cost $10 and sell for $20. Assume that unsold t-shirts can be sold to a discount shop for $5 each. Use the appropriate excel functions as needed to answer the following questions.

a. Calculate the optimal cycle service level.

b. Calculate the optimal stocking level.

c. What is the probability that demand for T-shirts will be between 20,000 and 30,000?

d. Suppose that the stocking level is 50,000. What is the corresponding cycle service level?

Reference no: EM132234042

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