Do not include anything other than numbers in your responses. For example, do not include comma or dollar sign in your numbers. As a rule of thumb, keep 2 decimal places for larger numbers and 3 decimal places for smaller numbers less than 1.
A bakery buys sugar from a big distributor to use in baking cakes. Typically, they use 27 pounds of sugar in a day. But depending on the day, they may use a little bit less or more. It is estimated that the standard deviation of demand for sugar is 5 lbs per day. It takes 9 days from the time the bakery orders sugar until the distributor delivers the sugar. The manager wants to have a service level of 0.92. Determine each of the following, assuming that demand is distributed normally.
Z value for the intended service level:
The safety stock that will provide the intended service level:
The ROP that will provide the intended service level :