Managing Operations Across the Supply Chain 1st Edition by Morgan Swink,Steven Melnyk,Bixby Cooper, Janet Hartley

Exercise 9

Jasper's Grocery places an order for Monster every 3 weeks.Once the order is placed, delivery to the store typically occurs in 1 week.Average demand is 100 cases per week and the standard deviation of demand is 20 cases/week.The store policy is to stock an amount of inventory which allows for an average stockout condition of 10% while waiting for replenishment.It is time to place an order and there are 420 cases on hand.How many units should be ordered?