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PLEASE INCLUDE EQUATIONS USED Demand for peanuts at a food production center can be approximated by a Normal distribution with mean of 12,000 pounds per
PLEASE INCLUDE EQUATIONS USED
Demand for peanuts at a food production center can be approximated by a Normal distribution with mean of 12,000 pounds per week and a standard deviation of 1400 pounds per week. The manager aims to have peanuts available 90% of the time. Lead time is 3 days and the center operates seven days a week (Hint: Work in terms of weeks for the following problems) a. Calculate the ROP, rounding up to the nearest pound. ROP= b. What would the order size be for a fixed-interval model using the previous information available as well as an order interval of 7 days and a supply of 5500 pounds at the time of counting? Round up to the nearest pound. QPounds= c. A delivery truck that was loaded to supply more peanuts to the production center experienced mechanical problems, which added one day to the lead time making it 4 days instead of 3. If the center has 6,150 pounds of peanuts currently, what is the probability of stocking out? Pstockout
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