A bulk foods store sells unshelled peanuts by the kilogram. Historically, daily demand is Normally distributed with

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A bulk foods store sells unshelled peanuts by the kilogram. Historically, daily demand is Normally distributed with a mean of 8 kg and a standard deviation of 1 kg. The purchase lead time from the supplier also appears to be Normally distributed with a mean of eight days and a standard deviation of one day. What ROP would provide stock-out risk of 10 percent during a lead time?
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Operations Management

ISBN: 978-0071091428

4th Canadian edition

Authors: William J Stevenson, Mehran Hojati

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