document.write( "Question 735635: C-2. [20] Acme Copier Supplies currently supplies copier paper from two warehouses. Warehouse A experiences demands that are normally distributed with a mean of 30,000 cases per week and a standard deviation of 5,000 cases per week. Warehouse B experiences demands that are normally distributed with a mean of 30,000 cases per week and a standard deviation of 8,000 cases per week. The two warehouses are \n" );
document.write( "resupplied only once per week. [20 marks total]\r \n" );
document.write( "\n" );
document.write( "(a) What is the probability that demand at Warehouse A exceeds 32,500 cases? \n" );
document.write( "[4 marks]\r \n" );
document.write( "\n" );
document.write( "(b) What is the stock level required at Warehouse A that will meet weekly demand \n" );
document.write( "95% of the time? [4 marks]\r \n" );
document.write( "\n" );
document.write( "(c) What is the stock level required at Warehouse B that will meet weekly demand 95%\r \n" );
document.write( "\n" );
document.write( "of the time? [4 marks]\r \n" );
document.write( "\n" );
document.write( "(d) Acme has the opportunity to consolidate the two warehouses into a single warehouse. Suppose that weekly demand at the two warehouses is independent. If \n" );
document.write( "they wish to stock a single warehouse so that weekly demand will be met 95% of the \n" );
document.write( "time, how much should they stock? From an inventory point of view, does it make \n" );
document.write( "sense to consolidate the warehouses (i.e. does the total inventory stock decrease)? \n" );
document.write( "[4 marks]\r \n" );
document.write( "\n" );
document.write( "(e) How does your answer to (d) change if the correlation between demands at the \n" );
document.write( "two warehouses is +0.6875? \n" );
document.write( "
![\"\"](\"/images/stars/stars-13.gif\")
