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Suppose that the manager is using the EOQ / ROP model described in part a . One day after placing an order with the producer,
Suppose that the manager is using the EOQROP model described in part a One day after placing an order with the producer, the manager receives a call from the producer saying that the order will be delayed because of problems at the producers plant. The producer promises to have the order there in two days. After hanging up the manager checks the inventory of vanilla ice cream and finds that litres have been sold since the order was placed. Assuming that the producers promise is valid, what is the probability that the store will run out of vanilla ice cream before the shipment arrives? Round your intermediate calculations to decimal places and the final answer to decimal places.
Probability
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