Essay
A gourmet food store uses a one-week periodic review system for its supply of coffee beans. There is a five-day lead time for orders, and the store will allow two stockouts per year.
a.What is the probability of a stockout associated with each replenishment decision?
b.What is the replenishment level if demand during the review and lead-time periods is normally distributed with mean 120 pounds and standard deviation 8 pounds?
c.How many pounds of beans should be ordered if there are 42 pounds of beans on hand?
Correct Answer:
Verified
a.2/52 = .0385
B.M =...View Answer
Unlock this answer now
Get Access to more Verified Answers free of charge
Correct Answer:
Verified
B.M =...
View Answer
Unlock this answer now
Get Access to more Verified Answers free of charge
Q2: Annual purchase cost is included in the
Q7: The single-period inventory model is most applicable
Q8: Derive and explain the total cost expression
Q12: What could be meant by service level?
Q15: Every year in early October Steven King
Q17: An assumption in the economic production lot
Q27: The objective of the EOQ with quantity
Q32: Constant demand is a key assumption of
Q38: When the reorder point r exceeds Q*,the
Q48: In the periodic review model,the order quantity