Course Solutions Uncategorized Sarah S Muffler Shop One Standard Muffler Fits Large Variety Cars Sarah Wishes Establish R Q34213497

Sarah S Muffler Shop One Standard Muffler Fits Large Variety Cars Sarah Wishes Establish R Q34213497

Sarahs Muffler Shop has one standard muffler that fits a large variety of cars. Sarah wishes to establish a reorder point system to manage inventory of this standard muffler. Annual demand Standard deviation of daily demand Item cost Annual holding cost 4,700 mulrlers Ordering cost Lead time Working days S 60 per order s e pe mutmer day 7 mufflers per working day Servicepobity 90% S 60 per muffler 2 working days 300 per year 25 % of item value Use the above information to determine the best order size and the reorder point: Use Excels NORMSINV Round z value to 2 decimal places and final answer to the nearest whole number.) function to find the correct critical value for the given α-level. Do not round intermediate calculations. Best order size Reorder point mufflers mufflers

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