G Chairish-Is-The Word, Inc., manufactures top-end hardwood chairs that are sold through a variety of retail outlets. The most popular model sells (wholesale) for $400 per chair and costs $300 to make. Past data show that average monthly demand is 1,000 chairs with a standard deviation of 200 chairs and that the normal distribution is a reasonable fit. CITW uses a 20 percent annual interest charge to estimate inventory carrying costs, so that the cost to carry one chair in stock for 1 month is $300(0.20)/12 = $5.

If all orders are backlogged and the cost of lost customer goodwill from carrying a single chair on backorder is $20, what order-up-to (base stock) level should CITW use?

Step-by-step explanation:

If all orders are backlogged and the cost of lost customer goodwill from carrying a single chair on backorder is $20, what order-up-to (base stock) level should CITW use?

Company has mean demand = 1000

Standard deviation = 200 chairs

95% service level, Z=1.64 ⇒ 1000 - 1.64 * 200  = 1000 – 328 =672 chairs.

The order up to base model is 672 chairs.

answer: 1, 3 and 5 are correct

step-by-step explanation:

the system of inequalities is

step-by-step explanation:

step 1

find the equation of the dashed line

we have the points

(0,0) and (3,1)

the line passes through the origin, so, is a direct variation

find the slope

the equation of the dashed line is

the solution of the inequality a s the shaded area above the dashed line

therefore

the equation of the inequality a is

step 2

find the equation of the solid line

we have the points

(4,0) and (0,4)

find the slope

the equation of the solid line is

the solution of the inequality b s the shaded area below the solid line

therefore

the equation of the inequality b is

step 3

the system of inequalities is