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Example 4 Specialty Foods sells coffee beans by the kilogram. Daily demand is normally distributed with a mean of 80 kilograms and standard deviation of
Example 4 Specialty Foods sells coffee beans by the kilogram. Daily demand is normally distributed with a mean of 80 kilograms and standard deviation of 10 kilograms. Lead time is also normally distributed with a mean of 8 days and a standard deviation of one day. 1. What re-order point would provide a stockout risk of 10%? 2. What is the safety stock? 748.61 -640 3. What is the expected number of units short per cycle? 4. What is the expected number of units short per year? 5. Evaluate the fill rate B
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