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Demand for vanilla ice cream at a small ice cream shop can be approximated by a Normal distribution with a mean of 1 9 litres

Demand for vanilla ice cream at a small ice cream shop can be approximated by a Normal distribution with a mean of 19 litres per week
and a standard devlation of 3.5 litres per week. The lce cream Is purchased from an ice cream producer. The store manager deslres a
lead time service level of 90 percent. Lead time from the producer is two days. The store is open seven days a week. Refer: )
table.
a. If the EOQ/ROP model is used for ordering the ice cream from the producer, what ROP would be consistent with the desired lead
time service level? (Round the final answer to 2 decimal places.)
ROP
Itres
b. If a fixed-interval model is used Instead, what order quantity should be used if the order interval is 9 days and 7 litres are on hand
and none are on order at the time of order? (Do not round the intermedlate calculations. Round the final answer to the nearest
whole number.)
Quantity
litres
c. Suppose that the manager is using the EOQ/ROP model described in part a. One day after placing an order with the producer, the
manager recelves a call from the producer saying that the order will be delayed because of problems at the producer's plant. The
producer promises to have the order there in two days. After hanging up, the manager checks the Inventory of vanilla ice cream and
finds that 1 litres have been sold since the order was placed. Assuming that the producer's promise is valid, what is the probability that
the store will run out of vanilla ice cream before the shipment arrives? (Round your intermediate calculations to 2 decimal places and
the final answer to 4 decimal places.)
Probability
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