Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Angela's Italian Store in Downtown Edmonton orders many of their items, such as cold-cut meats, olives, and cheese, from Italy. A distributor stops by every

Angela's Italian Store in Downtown Edmonton orders many of their items, such as cold-cut meats, olives, and cheese, from Italy. A distributor stops by every three weeks to take orders. Let us focus on the inventory management of one their popular items: pepperoni. They sell, on average, 100 pounds of pepperoni every week. The standard deviation of weekly sales is 20 pounds. They promise high-quality products and high accessibility to their customers. So they have decided to limit the chance of stock-out to 2%. Imagine the distributor's representative is stopping today to take orders on pepperoni and there are currently 220 pounds of pepperoni in the store. The lead time for every order is two weeks. a) Calculate and report the required safety stock, OUL, and the order size? b) What is the probability that the store is going to run out of pepperoni until the new order arrives

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Planned Giving Management Marketing And Law

Authors: Ronald R. Jordan, Katelyn L. Quynn

3rd Edition

0471679798, 978-0471679790

More Books

Students also viewed these General Management questions

Question

In general, what is the effective date of a new regulation?

Answered: 1 week ago

Question

Factor the expression completely. 1 + 8y

Answered: 1 week ago

Question

evaluate signs to determine their value on communication.

Answered: 1 week ago