(Fancy Paints) Fancy Paints is a small paint store. Fancy Paints stocks 200 different SKUs…


(Fancy Paints) Fancy Paints is a slight color garner. Fancy Paints supplys 200 contrariant SKUs (stock-keeping units) and places food command weekly. The classify arrives one month (let’s say lewd weeks) following. For the cause of sincerity, let’s exhibit weekly claim for each SKU is Poisson arranged after a occasion mediocre 1.25. Fancy Paints conceals a 95 percent in-supply appearance.

a. What is the mediocre catalogue at the garner at the end of the week? [17.3]

b. Now imagine Fancy Paints purchases a color-mixing document. This document is high-priced, but instead of supplying 200 contrariant SKU colors, it allows Fancy Paints to supply simply five basic SKUs and to succeed all the other SKUs by mixing. Weekly claim for each SKU is normally arranged after a occasion mediocre 50 and flag failure 8. Imagine Fancy Paints conceals a 95 percent in-supply appearance for each of the five colors. How greatly catalogue on mediocre is at the garner at the end of the week? [17.3]

c. After testing the color-mixing document for a occasion, the director realizes that a 95 percent in-supply appearance for each of the basic colors is not sufficient: Since mixing requires the intercourse of multiple mixing components, a excellent in-supply appearance for components is needed to conceal a 95 percent in-supply appearance for the singular SKUs. The director decides that a 98 percent in-supply appearance for each of the five basic SKUs should be comprehensive. Imagine that each can requires $14 and 20 percent per year is pregnant for encroachment catalogue (exhibit 50 weeks per year). What is the transmute in the garner’s encroachment require not-absolute to the primordial plight in which all colors are supplyed singularly? [17.3]