Deflorio corporation's inventory at the end of year 2 was $156,000 and its inventory at the end of year 1 was $140,000. the comp
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Answer:
The target inventory position is T= 713.6 gallons.
Explanation:
Given:
Average demand =per day = D = 152 Gallons
Standard deviation of demand = σ = 33 Gallons per day
Lead time for delivery = L = 4 days
Z value for 94.5% service level = 1.6
The target inventory position = (Average demand x Lead time) + Safety stock
= (D × L) + (Z× σ × )
= (152 × 4) + (1.6 × 33 × )
= (152 × 4) + (1.6 × 33 × 2)
= 608 + 105.6
= 713.6
Answer:
represent the lower limit
represent the Upper limit
So then the limits for this case are (405, 435)
Explanation:
Let's define X as our random variable that represent the "number of calories for a chicken breast", and we have the following data:
The select a sample of 25 chickens , n = 25. And we want to find the limits for a confidence interval within 3 deviations from the mean with z =3.
We assume that the distribution for X is normal. So then the distribution for the sample mean is also normal.
And for this case the confidence interval would be given by:
So the limits are defined as:
represent the lower limit
represent the Upper limit
Since we have all the values given we cn replace like this:
represent the lower limit
represent the Upper limit
So then the limits for this case are (405, 435)