Question
Demand for grated parmesan at Whole Foods is 67 cases a day on average with a standard deviation of 10 cases per day. The order
Demand for grated parmesan at Whole Foods is 67 cases a day on average with a standard deviation of 10 cases per day. The order lead time could vary too. On average, it takes 3 days for an order to arrive and the standard deviation of the lead time is 1.5 days. Whole Foods targets a 98% service level.
Note: both demand and lead time random variables follow a Normal distribution.
- What does it mean for Whole Foods to target a 98% 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?
- What is the reorder point? that is, when an order should be placed?
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access with AI-Powered Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started
Income Tax Fundamentals 2013
Authors: Gerald E. Whittenburg, Martha Altus Buller, Steven L Gill
31st Edition
1111972516, 978-1285586618, 1285586611, 978-1285613109, 978-1111972516
