A supermarket is open B60 days per year. Daily use of cash register tape averages 10 rolls,

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A supermarket is open B60 days per year. Daily use of cash register tape averages 10 rolls, Normally distributed, with a standard deviation of two roils per day. The cost of ordering tapes is $10 per order, and holding cost is 40 cents per roll a year. Lead time is three days.
a. What is the EOQ?
b. What ROP will provide a lead time service level of 96 percent?
c. What ROP will provide an annual service level of 96 percent if O = EOQ?
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Operations Management

ISBN: 978-0071091428

4th Canadian edition

Authors: William J Stevenson, Mehran Hojati

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