4. (*) Jimmys Delicatessen sells large tins of Tom Tuckers Toffee. The deli uses a periodic review...
Question:
4. (*) Jimmy’s Delicatessen sells large tins of Tom Tucker’s Toffee. The deli uses a periodic review system, checking inventory levels every 10 days, at which time an order is placed for more tins. Order lead time is 3 days. Average daily demand is 7 tins, so average demand during the reorder period and order lead time (13 days) is 91 tins.
The standard deviation of demand during this same 13-
day period is 17 tins. Calculate the restocking level.
Assume the desired service level is 90% percent.
Fantastic news! We've Found the answer you've been seeking!
Step by Step Answer:
Related Book For
Introduction To Operations And Supply Chain Management
ISBN: 9780131791039
2nd Edition
Authors: Cecil C. Bozarth, Robert B. Handfield
Question Posted: