Question: 3 5 points (Difficulty Level - Hard) Jane uses the order-up-to model to manage the inventory of flour in the restaurant. The daily consumption of

3 5 points (Difficulty Level - Hard) Jane uses

3 5 points (Difficulty Level - Hard) Jane uses the order-up-to model to manage the inventory of flour in the restaurant. The daily consumption of flour at the restaurant follows a normal distribution with averages of 25 lbs and standard deviation of 2 lbs. Suppose Jane can buy flour from a supplier. The effective delivery lead time is 5 days, i.e., L+1 = 5 days. Jane sets the critical ratio at 98%. The corresponding z value is 2.0537. The order-up-to level of the flour = lbs. (Round your answer to the nearest integer) Type your answer.... 400

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related General Management Questions!