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Question: Part B) Dunstreet’s Department Store would like to develop an inventory ordering policy of a 95 p…

by | Dec 1, 2023 | Posted Questions



Part B) Dunstreet’s Department Store would like to develop an
inventory ordering policy of a 95 percent probability of not
stocking out. To illustrate your recommended procedure, use as an
example the ordering policy for white percale sheets.

Demand for white percale sheets is 5,000 per year. The store is
open 365 days per year. Every two weeks (14 days) inventory is
counted and a new order is placed. It takes 10 days for the sheets
to be delivered. Standard deviation of demand for the sheets is
five per day. There are currently 150 sheets on hand. How many
sheets should you order?

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