4. (*) Jimmys Delicatessen sells large tins of Tom Tuckers Toffee. The deli uses a periodic review...

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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.

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Introduction To Operations And Supply Chain Management

ISBN: 9780131791039

2nd Edition

Authors: Cecil C. Bozarth, Robert B. Handfield

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