Dave\'s Auto Supply custom mixes paint for its customers. The shop performs a we

Question

Dave's Auto Supply custom mixes paint for its customers. The shop performs a weekly inventory count of the main colors that are used for mixing paint weekly 27 gallons Standard 8 gallons/week service 90 % inventory 23 gallions Lead time 1 week Determine the amount of white paint that should be ordered using the above information: (Use Excel's NORMSINVO function to find the correct critical value for the given a-level. Do not round intermediate calculations. Round "z" value to 2 decimal places and final answer to the nearest whole number.) of white glle

Explanation / Answer

z value corresponding to 0.90 =NORMSINV(0.90) = 1.28

Safety Stock = z* sd = 1.28* 8 = 10.24

Reorder point ® = dL + SS = 27*1 + 10.24 = 37.24 gallons

Current inventory = 23 gallons

Amount of white paint that needs to be ordered = 37.24-23 = 14.24 gallons= 14 gallons

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