A health food store buys 14-ounce bags of quinoa from a Mexican supplier. The stores daily demand

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A health food store buys 14-ounce bags of quinoa from a Mexican supplier. The store’s daily demand for quinoa is normally distributed with a mean of 30 bags per day and a standard deviation of 4 bags per day. The lead time varies but is normally distributed and has mean of 15 days and a standard deviation of 3 days. If the health food store wants to provide its customers with an 85% service level, what should the reorder point be?

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Operations Management Managing Global Supply Chains

ISBN: 978-1506302935

1st edition

Authors: Ray R. Venkataraman, Jeffrey K. Pinto

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