Question: Additional Algo 1 1 - 4 On - Order Quantity A factory orders supplies every 8 days. The lead time for deliveries is 3 days.

Additional Algo 11-4 On-Order Quantity
A factory orders supplies every 8 days. The lead time for deliveries is 3 days. Demand for butter averages 20 pounds per day with a
standard deviation of 2.3 pounds. The holding cost for butter is $0.37 per pound per day. The factory wants to achieve an in-stock
probability rate of 99.87% for butter.
On average, how many pounds of butter will the factory have on order?
 Additional Algo 11-4 On-Order Quantity A factory orders supplies every 8

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!