Question: A regional warehouse orders items once a week from a central warehouse. The truck arrives 3 days after the order is placed. The warehouse operates

A regional warehouse orders items once a week from a central warehouse. The truck arrives 3 days after the order is placed. The warehouse operates 5 days a week. For a particular brand and size of chicken soup, the demand is fairly steady at 20 cases per day. Safety stock is set at 2 days’ supply.

a. What is the target level?

b. If the quantity on hand is 90 cases, how many should be ordered?

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