An Auto Parts Store (Open 350 Days Per Year) in a Major

question 42

Essay

An auto parts store (open 350 days per year) in a major metropolitan area reviews its inventory on a periodic basis using a computer system.It has recently been experiencing some problems with a particular part, a tune?up kit.The kit is bought from a U.S.manufacturer.The annual demand for these kits is 10,500.The cost to carry one kit in inventory for one year is $4.90, and the cost to place a replenishment order is $17 per order.Replenishment lead time is 4 days.
a.What should be the review period for these tune-up kits?
b.What is the optimal replenishment level without safety stock?
c.What is the optimal replenishment level with safety stock, assuming a 95 percent service level?

Identify the conditions under which Poisson distribution provides a good approximation to binomial probabilities.

Compute probabilities and statistical measures (mean, variance, standard deviation) of Poisson distribution given specific parameters.

Identify the primary functions and structural components of neurons.

Distinguish between the three types of muscle tissue based on structural and functional characteristics.

---

Definitions:

P-value

The probability of obtaining test results at least as extreme as the results actually observed, given that the null hypothesis is true.

Mean Lifetime

The average length of time that an entity (like a product or component) is expected to last under specified conditions.

Critical Value(s)

Critical values are threshold values that define regions where the test statistic leads to the rejection of the null hypothesis.

Significance Level

The probability of rejecting the null hypothesis in a statistical test when it is actually true, used as a threshold for determining the statistical significance of a result.