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2. Whole Foods Market sells Kaiser brand sausages. The demand for Kaiser Sausages at the market is uncertain but estimated from a known mean (online
2. Whole Foods Market sells Kaiser brand sausages. The demand for Kaiser Sausages at the market is uncertain but estimated from a known mean (online data) with a standard deviation of 6800 packages/year. For each supply order processed the fixed cost includes a handling cost of $165/order plus a given shipping cost/order (online data) from the Kaiser warehouse to the Whole Foods Market. The holding cost for a sausage package/year is also given (online data). The supply lead time is fixed at 2 weeks. (i) For a target service level of 90% what is the (Q,R) reorder policy ? Assume 52 weeks in a year. (ii) What is the average order cycle time (time between orders) ? (iii) The supply chain manager discovers that the supply time is not constant but normally distributed with a standard deviation of 0.75 weeks. What is the new reorder level
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