16.3. Dutch Farms imports cheese by the case from Holland for distribution to its Texas retail outlets.
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16.3. Dutch Farms imports cheese by the case from Holland for distribution to its Texas retail outlets. During the year (360 days), Dutch Farms sells 1,080 cases of cheese. Because of spoilage, Dutch Farms estimates that it costs the firm $6 per year to store a case of cheese. The cost to place an order runs about $10. The desired service level is 98 percent. The demand for cheese during the 1-day lead time is shown below.
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Related Book For 
Service Management Operations Strategy Information Technology
ISBN: 9780071244404
5th Edition
Authors: James A Fitzsimmons
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