A grocery store uses a fixed order cycle policy for ordering the paper towels it sells to
Question:
A grocery store uses a fixed order cycle policy for ordering the paper towels it sells to the stores customers. Demand for the paper towels is normally distributed with a mean of 50 rolls per day and a daily standard deviation of 3 rolls. The order interval is 12 days with a lead time of three days. The quantity of paper towel rolls in stock at the time of reorder for three order cycles is given in the following table:
Determine the order quantity for each of the three order cycles.
Transcribed Image Text:
Order Cycle Inventory on Hand 35 4 88
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