Kellys Tavern serves Shamrock draft beer to its customers. The daily demand for beer is normally distributed,

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Kelly’s Tavern serves Shamrock draft beer to its customers. The daily demand for beer is normally distributed, with an average of 20 liters and a standard deviation of 4 liters. The lead time required to receive an order of beer from the local distributor is 12 days. Determine the safety stock and reorder point if the restaurant wants to maintain a 90% service level. What would be the increase in the safety stock if a 95% service level were desired?

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Operations Management Creating Value Along the Supply Chain

ISBN: 978-1118301173

1st Canadian Edition

Authors: Roberta S. Russell, Bernard W. Taylor, Ignacio Castillo, Navneet Vidyarthi

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