Question
9. Figaros Cat Supply is a felines best friend. They deliver catnip directly to the customer door. Knowing that pet owners are crazy and want
9. Figaros Cat Supply is a felines best friend. They deliver catnip directly to the customer door. Knowing that pet owners are crazy and want instant gratification for their pets, Figaro has set a 93% service level policy (SLP). The annual demand for catnip is 4800 units with a standard deviation of 25 units. The company works 365 days per year and has a lead time from their supplier of 5 days. They sell catnip for $19.99 while incurring a purchasing cost of $5. A. What is the ReOrder Point (ROP)? B. What is the new ROP based on a 93% SLP (Xi)? C. How much safety stock should Figaro carry (SS)? D. What is the Zscore for this problem?
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