Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Ethan's dog, Max, every day eats on average 2 pounds of kibble with a standard deviation of 0.25 pounds. Ethan buys the kibble from an

Ethan's dog, Max, every day eats on average 2 pounds of kibble with a standard deviation of 0.25 pounds. Ethan buys the kibble from an online retailer that charges $2 per pound of kibble. The retailer has a delivery fee of $10 per order, regardless of how much dog food is ordered and consistently delivers in 2 days. Living in a small house Ethan does not have too much storage space, so he estimates that keeping a pound of kibble in the cabinet essentially costs him $0.1 per week. Max the dog, or course, does not pay for food. The retailer has two different sizes for kibble: 60-pound bags and 90-pound bags. If he runs out, he needs to replace the missing kibble with an equal amount of wet food which costs more, at $6 per pound. Note that Z.0.75 = 0.67, Z.0.67 = 0.43, Z.0.33 = -.43 and there are 365 days per year. 


a) Ethan needs to know when to place an order for kibble. At what level is the kibble (in pounds) when Ethan needs to place an order? How much safety stock should Ethan target? ROP = 4.15 lbs SS = 0.15 pounds 

Step by Step Solution

There are 3 Steps involved in it

Step: 1

To determine when Ethan needs to place an order for kibble and the safety stock he shoul... blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Principles Of Operations Management Sustainability And Supply Chain Management

Authors: Jay Heizer, Barry Render, Chuck Munson

11th Edition

0135173930, 9780135173930

More Books

Students also viewed these General Management questions

Question

Know what specific factors determine interest rates. AppendixLO1

Answered: 1 week ago

Question

What is time-based competition?

Answered: 1 week ago

Question

What is process strategy?

Answered: 1 week ago

Question

Refer to Exercise 5. Compute a 95% t CI for .

Answered: 1 week ago