Question: The Impanema Restaurant stocks a red Brazilian table wine it
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 deviation of 4 bottles. The wine merchant sends a representative to check the restaurant’s wine cellar every 30 days, and during a recent visit, there were 25 bottles in stock. The lead time to receive an order is 2 days. The restaurant manager has requested an order size that will enable him to limit the probability of a stockout to 2%. Determine the order size.
Relevant QuestionsEvergreen Fertilizer Company produces fertilizer. The company’s fixed monthly cost is $25,000, and its variable cost per pound of fertilizer is $0.15. Evergreen sells the fertilizer for $0.40 per pound. Determine the ...If Evergreen Fertilizer Company changes its production process to add a weed killer to the fertilizer in order to increase sales, the variable cost per pound will increase from $0.15 to $0.22. What effect will this change ...Hannah Byers and Kathleen Taylor are considering the possibility of teaching swimming to kids during the summer. A local swim club opens its pool at noon each day, so it is available to rent during the morning. The cost of ...Consider a model in which two products, x and y, are produced. There are 100 pounds of material and 80 hours of labor available. It requires 2 pounds of material and 1 hour of labor to produce a unit of x, and 4 pounds of ...The concession stand at the Blacksburg High School stadium sells slices of pizza during soccer games. Concession stand sales are a primary source of revenue for high school athletic programs, so the athletic director wants ...
Post your question