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Answer questions The cookie business has an average demand for X pounds of butter per day assuming 1 batch of cookies makes 50 cookies and
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The cookie business has an average demand for X pounds of butter per day assuming 1 batch of cookies makes 50 cookies and each batch takes 2 sticks of butter. The demand for cookies is normally distributed with a daily demand of 2200 cookies per day for 5 days per week. The standard deviation around demand is 210 cookies per day. The cookie company has decided to look at this on a weekly basis and the lead time for the special organic farm butter is 1 week. The company wants to maintain a 98% service level on ing redients. What is: a) What is the weekly average butter demand in pounds if ( 2 sticks =0.5 pound)? b) What Safety Stock of butter should they maintain? c) At what inventory level should they Re-Order? d) If they order every 3 weeks and they have an Inventory before ordering of 40 pounds how much should they re-order? Calculate all answers in poundsStep by Step Solution
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