Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Demand for walnut fudge ice cream at the Sweet Cream Dairy can be approximated by a normal distribution with a mean of 2 1 gallons
Demand for walnut fudge ice cream at the Sweet Cream Dairy can be approximated by a normal distribution with a mean of gallons per week and a standard deviation of gallons per week. The new manager desires a service level of percent. Lead time is days, and the dairy is open seven days a week. Hint: Work in terms of weeks.
For this problem, we consider both continuous inventory system and periodic inventory system.
If we use periodic inventory system, the time from delivery of an order until next review is days Note: this is reported in days
What is the corresponding zvalue for the desired service level? keep three decimal places
How long is the lead time in fractions of a week
How much is the average demand during a week?
How much is the standard deviation of the demand during the week?
If we use continuous inventory system, what safety stock is consistent with the desired service level?
If we use continuous inventory system, what ROP is consistent with the desired service level?
If we use periodic inventory system, what safety stock is consistent with the desired service level?
If we use periodic inventory system, what is the quantity to order when the supply at hand is gallons?
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored 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