Final answer:
The expected on-hand inventory, expected on-order inventory, in-stock probability, and order-up-to-level for specific scenarios can be calculated using formulas and given data. The expected on-hand inventory is the order-up-to level minus the average daily demand. The expected on-order inventory is the average daily demand minus the order-up-to level. The in-stock probability is calculated by dividing the difference between the order-up-to level and the average daily demand by the standard deviation of daily demand. The order-up-to level can be determined by adding the product of the z-score and the standard deviation of daily demand to the average daily demand.
Step-by-step explanation:
The expected on-hand inventory can be calculated using the formula:
Expected on-hand inventory = order-up-to-level - average daily demand
For an order-up-to level of 2404, the expected on-hand inventory = 2404 - 384 = 2020.
The expected on-order inventory can be calculated using the formula:
Expected on-order inventory = average daily demand - order-up-to-level
For an order-up-to level of 2547, the expected on-order inventory = 384 - 2547 = -2163.
The in-stock probability can be calculated using the formula:
In-stock probability = (order-up-to level - average daily demand) / standard deviation of daily demand
For an order-up-to level of 2031, the in-stock probability = (2031 - 384) / 157 = 11.64%.
The order-up-to level can be calculated using the formula:
Order-up-to level = average daily demand + (z-score * standard deviation of daily demand)
For an in-stock probability of 0.94, the order-up-to level = 384 + (1.75 * 157) = 660.75. Rounded to the nearest integer, the order-up-to level should be 661.