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Demand of Double Espresso Scuro for Nespresso machine follows a Normal distribution with the mean of 5000 packs per month (each pack includes 10 capsules)
Demand of Double Espresso Scuro for Nespresso machine follows a Normal distribution with the mean of 5000 packs per month (each pack includes 10 capsules) and the standard deviation of 500 packs. The lead time is 15 days from time of ordering to delivery. Assume continuous review inventory system with the order size of 8000 packs and it is desired to satisfy the demands in at least 95% of the lead time periods. Obtain the followings in packs and assume each month includes 30 days. a) The safety stock of Double Espresso Scuro b) The reorder point of Double Espresso Scuro c) The average inventory of Double Espresso Scuro
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