What is fill rate that results from your response in part

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Reference no: EM13342761

Tammi's Truck Stop sells Seat-o-Nails cushions, which are specially designed to keep drivers awake on the road. Her accessories supplier makes deliveries every Tuesday, at which times she can get as many cushions as she wants (the supplier's truck carries a large number of cushions). The cushions cost $40 wholesale, and Tammi sells them for $65. She also uses 35 percent interest rate to evaluate the cost of holding inventory. Today it is Tuesday, Tammi has 12 cushions in stock, and the supplier has just arrived. Assuming that the weekly demand is normally distributed with mean 35 and st. deviation 10, answer the following questions:
a. How many cushions should Tammi buy if sales are lost when see runs out of stock during the week?
b. What is the fill rate that results from your response in part (a)?
c. Reconsider part (a) if unmet demand is not lost but it is backordered, and it costs
Tammi $12 to mail the cushion to the customer.

Reference no: EM13342761

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