How much safety inventory does the store carry

Assignment Help Financial Management

Reference no: EM13928053

Weekly demand for a popular model of HP printers at a Sam’s Club store is normally distributed, with a mean of 30 and standard deviation of 20. The store manager continuously monitors inventory and currently orders 300 printers each time the inventory drops to 200 printers. HP currently takes four weeks to fill an order.

a. How much safety inventory does the store carry?

b. What CSL does Sam’s Club achieve as a result of this policy?

c. What fill rate does the store achieve?

Reference no: EM13928053

Questions Cloud

How much will you have in the account when you retire at age : Starting when you are 20 years old, you deposit $100 a year into an paying 5.50% interest compounded semi-annually. How much will you have in the account when you retire at the age of 65?

State-operated lottery from purchasing lottery tickets : No law prohibits citizens in a state that does not sponsor a state-operated lottery from purchasing lottery tickets in a state that does have such a lottery. Georgia did not have a state-operated lottery, so John and several other Georgia residents a..

What are the nominal and effective costs of trade credit : Grunewald Industries sells on terms of 2/10, net 40. Gross sales last year were $4,562,500 and accounts receivable averaged $437,500. Half of Grunewald's customers paid on the 10th day and took discounts. What are the nominal and effective costs of t..

Calculate the nominal annual cost of non free trade credit : Calculate the nominal annual cost of non free trade credit under each of the following terms. Assume that payment is made either on the discount date or on the due date. a. 1/15, net 20 b. 2/10, net 60 c. 3/10, net 45 d. 2/10, net 45 e. 2/15, net 40

How much safety inventory does the store carry : Weekly demand for a popular model of HP printers at a Sam’s Club store is normally distributed, with a mean of 30 and standard deviation of 20. The store manager continuously monitors inventory and currently orders 300 printers each time the inventor..

Derive the marriage theorem from tuttes theorem : Show that a graph G contains k independent edges if and only if q(G - S) ≤ |S| + |G| - 2k for all sets S ⊆ V (G). Find a cubic graph without a 1-factorHint : Corollary 2.2.2. Derive the marriage theorem from Tutte's theorem.

What would the annual yield to maturity be on the bond : Sweet Fruit, Inc. has a $1000 par value bond that is currently selling for $1280. It has an annual coupon rate of 9.90 percent, paid semi annually, and has 10-years remaining until maturity. What would the annual yield to maturity be on the bond if y..

According to the efficient markets hypothesis : According to the efficient markets hypothesis, professional investors will earn: excess profits over the long-term. a dollar return equal to the value paid for an investment. excess profits, but only on short-term investments. a return that "beats th..

Narrowest distribution of returns for the period : Which one of the following has the narrowest distribution of returns for the period 1926-2011?

User Account

All Pages