Jaspers Grocery places an order for Monster every 3 weeks. Once the order is placed, delivery to

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Jasper’s Grocery places an order for Monster every 3 weeks. Once the order is placed, delivery to the store typically occurs in 1 week. Average demand is 100 cases per week and the standard deviation of demand is 20 cases / week. The store policy is to stock an amount of inventory which allows for an average stockout condition of 10% while waiting for replenishment. It is time to place an order and there are 420 cases on hand. How many units should be ordered?

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Managing Operations Across the Supply Chain

ISBN: 978-0078024030

2nd edition

Authors: Morgan Swink, Steven Melnyk, Bixby Cooper, Janet Hartley

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