Question
Jijo Restaurant is a low-key Indian restaurant selling various authentic Indian dishes. Jijo keeps an inventory of its best-selling desert Gulab Jamun, in the freezer
Jijo Restaurant is a low-key Indian restaurant selling various authentic Indian dishes. Jijo keeps an inventory of its best-selling desert Gulab Jamun, in the freezer and reorders as needed when inventory runs low. Specifically, Jijos rule of thumb is to place another order when there are only 80 Gulab Jamun left. Average daily demand is 23 units with a standard deviation of 8 units, and the average replenishment lead time is 2 days with a standard deviation of 1.2 days. Lately, Jijo has noticed that he runs out of Gulab Jamuns nearly three times a month, on average. Wanting to keep his customers happy, Jijo decides to strive for a 98% in-stock rate moving forward. What is the Standard Deviation Lead Time Demand?
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