The Fast Service Food Mart stocks frozen pizzas in a refrigerated display case. The average daily demand for the pizzas is normally distributed, with a mean of 8 pizzas and a standard deviation of 2.5 pizzas. A vendor for a packaged food distributor checks the market’s inventory of frozen foods every 10 days, and during a particular visit, there were no pizzas in stock. The lead time to receive an order is 3 days. Determine the order size for this order period that will result in a 99% service level. During the vendor’s following visit, there were 5 frozen pizzas in stock. What is the order size for the next order period?
Answer to relevant QuestionsThe Rolling Creek Textile Mill produces denim. The fixed monthly cost is $21,000, and the variable cost per yard of denim is $0.45. The mill sells a yard of denim for $1.30.a. For a monthly volume of 18,000 yards of denim, ...If Evergreen Fertilizer Company in Problem 4 changes the price of its fertilizer from $0.40 per pound to $0.60 per pound, what effect will the change have on the break-even volume?Annie Russell, a student at Tech, plans to open a hot dog stand inside Tech’s football stadium during home games. There are seven home games scheduled for the upcoming season. She must pay the Tech athletic department a ...In the example used to demonstrate model construction in this chapter (p. 4), a firm sells a product, x, for $20 that costs $5 to make, it has 100 pounds of steel to make the product, and it takes 4 pounds of steel to make ...The Impanema Restaurant stocks a red Brazilian table wine it purchases from a wine merchant in a nearby city. The daily demand for the wine at the restaurant is normally distributed, with a mean of 18 bottles and a standard ...
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