Question: Based on the historical data, the weekly demand for the americano is normal with mean 1 2 and variance 1 6 ( in bottles )

Based on the historical data, the weekly demand for the americano is normal with mean 12 and variance 16(in bottles)(Assume 52 weeks in a year and all excess demand is backordered) Question 1)(25 points =19+6 The cafeteria on campus started to sell high quality instant coffee americano. These instant coffees come in individual packs and cost 4TL/serving and the lead-time for replenishment is 4 weeks. Fixed cost of ordering is about 75TL and holding cost is 2TL/item annually The loss of customer goodwill is estimated to be 25TL per packet (can be used as penalty for unsatisfied demand). SHOW YOUR WORK! a)(7+6+6=19 points) How large an order should cafeteria be placing for americano to minimize total cost subject to 90% type 2 service level? (at least 2 iterations) b. What should be the reorder level (quantity) and expected cycle time? What is the expected time from the receipt of an order until the placement of next order? C. b)(6 points) What level of Type 1 service is being provided by the policy you found in part (a)?

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