Question
Whole Foods Store in Virginia Beach would like to develop an inventory ordering policy with a 95 percent probability of not stocking out. Demand for
Whole Foods Store in Virginia Beach would like to develop an inventory ordering policy with a 95 percent probability of not stocking out. Demand for GoOats product is 5,110 per year. The store is open 365 days per year. Every four weeks inventory is counted and a new order is placed. It takes 8 days for the GoOats to be delivered. Standard deviation of demand for the GoOats is 3 per day. There are currently 150 GoOats on-hand.
Using the P-Model, Determine how many GoOats should you order? (Use Excel's NORM.S.INV () function to find the z-value. Round all intermediate calculations and z-value to 2 decimal places and final answer to the nearest whole number.)
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