Business, 29.02.2020 05:38, kooygi5278

Sarah's 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 4,700 mufflers Ordering cost $ 60 per order Standard deviation of daily demand 5 mufflers per working day Service probability 90 % Item cost $ 25 per muffler Lead time 3 working days Annual holding cost 20 % of item value Working days 300 per year Use the above information to determine the best order size and the reorder point: (Use Excel's NORMSINV() function to find the correct critical value for the given α-level. Do not round intermediate calculations. Round "z" value to 2 decimal places and final answer to the nearest whole number.) Best order size mufflers Reorder point mufflers

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Sarah's Muffler Shop has one standard muffler that fits a large variety of cars. Sarah wishes to est...