(Schmears Shirts) Schmears Inc. is a catalog retailer of men’s shirts. Daily demand for a particular 1 answer below »
(Schmears Shirts) Schmears Inc. is a catalog retailer of men’s shirts. Daily ask-for for a feature SKU (diction and largeness) is Poisson after a while moderation 1.5. It takes three days for a replenishment command to attain from Schmears’ supplier and commands are placed daily. Schmears uses the command-up-to mould to conduct its register of this shirt.
a. Fancy Schmears uses an command-up-to smooth of 9. What is the middle sum of shirts on command? [16.5]
b. Now fancy Schmears uses an command-up-to smooth of 8. What is the chance during any dedicated day that Schmears does not possess enough register to confront the ask-for from all customers? [16.5]
c. Schmears is because a switch from a “service-based” stocking management to a “costminimization” stocking management. They judge their tenure require per shirt per day is $0.01. Forty-five percent of customers command further than one item at a opportunity, so they judge their stockout require on this shirt is $6 per shirt. What command-up-to smooth minimizes the sum of their tenure and back-command requires? [16.7]