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Bobbi s Restaurant in Boise, Idaho, is a popular place for weekend brunch. The restaurant serves real maple syrup with French toast and pancakes. Bobbi
Bobbis Restaurant in Boise, Idaho, is a popular place for weekend brunch. The restaurant serves real maple syrup with French toast and pancakes. Bobbi buys the maple syrup from a company in Maine that requires three weeks for delivery. The syrup costs Bobbi $ a bottle and may be purchased in any quantity. Fixed costs of ordering amount to about $ for bookkeeping expenses, and holding costs are based on a percent annual rate. Bobbi estimates that the loss of customer goodwill for not being able to serve the syrup when requested amounts to $ Based on past experience, the weekly demand for the syrup is normal with mean and variance in bottles For the purposes of your calculations, you may assume that there are weeks in a year and that all excess demand is back ordered.aHow large an order should Bobbi be placing with her supplier for the maple syrup, and when should those orders be placed?bWhat level of Type service is being provided by the policy you found in part acWhat level of Type service is being provided by the policy you found in part adWhat policy should Bobbi use if the stockout cost is replaced with a Type service objective of percent?eWhat policy should Bobbi use if the stockout cost is replaced with a Type service objective of percent? You may assume an EOQ lot size.fSuppose that Bobbis supplier requires a minimum order size of bottles. Find the reorder level that Bobbi should use if she wishes to satisfy percent of her customer demands for the syrup
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