Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Wendy's Cafe stocks an item that has a normally distributed demand. The average daily demand is 95 units, and the standard deviation of daily demand
Wendy's Cafe stocks an item that has a normally distributed demand. The average daily demand is 95 units, and the standard deviation of daily demand is 7.
The cafe places an order to replenish the inventory every 7 days, and aims to achieve a 99% service level. Lead time is assumed to be 0. Immediately prior to placing an order, they found 120 units in stock. How many units should be ordered?
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started