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Peerless Pies makes various kinds of pie, including pumpkin pies. The demand for pumpkin pies varies, based on time of year and other factors. The

Peerless Pies makes various kinds of pie, including pumpkin pies. The demand for pumpkin pies varies, based on time of year and other factors. The company wants to determine the reorder point for pumpkins.




Average pounds of pumpkins needed

60

pounds per week

Standard deviation of demand

4

pounds per week

Customer service level desired

97.5%

Lead time

2

weeks

a

What amount of safety stock is appropriate?

b

Determine the reorder point. (Round up if necessary.)

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