solution

Gainesville Cigar stocks Cuban cigars that have variable lead times because of the difficulty in importing the? product: Lead time is normally distributed with an average of 6 weeks and a standard deviation of 3 weeks. Demand is also a variable and normally distributed with a mean of

250 cigars per week and a standard deviation of 23 cigars.

Refer to the standard normal table for? z-values.

?a) For a 95?% service? level, what is the? ROP?

The reorder point is ____ cigars ?(round your response to the nearest whole? number).

?b) What is the ROP for a 98?% service? level?

The reorder point is _____ cigars ?(round your response to the nearest whole? number).

2.) University of Florida football programs are printed 1 week prior to each home game. Attendance averages

90,000 screaming and loyal Gators? fans, of whom? two-thirds usually buy the? program, following a normal? distribution, for ?$5 each. Unsold programs are sent to a recycling center that pays only 10cents per program. The standard deviation is 10,000 ?programs, and the cost to print each program is ?$2.

Refer to the standard normal table for? z-values.

?a) What is the cost of underestimating demand for each? program?

Cs=? _______

?b) What is the overage cost per? program?

Co=? ________

?c) How many programs should be ordered per? game?

______ programs should be ordered per game ?(round your response to the nearest whole? number).

?d) What is the stockout risk for this order? size?

Stockout risk= ___________ ?