Deep Six Seafood, a restaurant that is open 360 days a year, specializes in fresh Maine lobsters
Question:
Lead- Time Demand Probability
0........... .05
1........... .10
2........... .20
3........... .30
4........... .20
5........... .10
6........... .05
a. Deep Six would like to reconsider its order size. What would you recommend as an EOQ?
b. The Maine distributor is willing to give Deep Six a $ 0.50 discount on each lobster if orders are placed in lots of 360 each. Should Deep Six accept this offer?
c. If Deep Six insists on maintaining a safety stock of 2 lobsters, what is the service level?
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Related Book For
Service Management Operations Strategy Information Technology
ISBN: 978-0077841201
8th edition
Authors: James Fitzsimmons, Mona Fitzsimmons, Sanjeev Bordoloi
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