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Demand for grated parmesan at Whole Foods is 6 7 cases a day on average with a standard deviation of 1 0 cases per day.
Demand for grated parmesan at Whole Foods is cases a day on average with a standard deviation of cases per day. The order lead time could vary too. On average, it takes days for an order to arrive and the standard deviation of the lead time is days. Whole Foods targets a service level.
Note: both demand and lead time random variables follow aNormal distribution.
What does it mean for Whole Foods to target a service level with parmesan cheese?
Determine the safety stock level. If the values calculated are not integer, please round it
What is the reorder point?that is when an order should be placed?
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