Multiple Choice
Central Perk orders their organic coffee filters from a South American supplier that mails them as inexpensively (hence, as slowly) as possible. Central Perk uses 80 filters a day with a standard deviation of 5 days. It would be disastrous if they ran out of these filters, years ago customers caught them using paper towels from the men's room and business suffered. They have set their service level at 99% in hopes of avoiding a similar situation. It takes a fortnight (14 days) to receive a shipment and the standard deviation of the shipping time is two days. What is their reorder point?
A) 1120 filters
B) 1450 filters
C) 1495 filters
D) 1515 filters
Correct Answer:

Verified
Correct Answer:
Verified
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