SOLUTION: the problem is that the cost of renting warehouse space to keep enough recorders in inventory to meet all demand is exceesive high. the manager has determined that if 85% of custo

Question 1155554: the problem is that the cost of renting warehouse space to keep enough recorders in inventory to meet all demand is exceesive high. the manager has determined that if 85% of customer demand for recorders can be met, then the combine cost of lost sales and inventory will me minimized. the manager has estimated that monthly demand for records is normally distributed, with a mean of 175 recorders and a standard deviation of 55. determine the number of recorders the manager should order each month to meet 85% of customer demand
Answer by Theo(13342) (Show Source): You can put this solution on YOUR website!
mean is 175
standard deviation is 55.
that's the monthly demand.
the number of recorder necessary to keep on inventory to meet 85% of the demand is equal to 232 when rounded to the nearest integer.
here's the results from use of the statistical calculator that can be found at http://davidmlane.com/hyperstat/z_table.html
$$$

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