Question: For her Bakery, Zainab wants to develop an inventory ordering policy for her best - selling croissants with a 9 0 % probability of not

For her Bakery, Zainab wants to develop an inventory ordering policy for her best
-
selling croissants with a
9
0
%
probability of not stocking out. To illustrate the
recommended procedure, consider the ordering policy for croissants. The annual
demand for croissants is
8
,
0
0
0
units. The bakery operates
3
0
0
days a year. Every
week
(
7
days
)
,
inventory is counted, and a new order is placed. It takes
5
days for
the croissants to be delivered. The standard deviation of daily demand for
croissants is
3
units. Currently, there are
2
0
0
croissants in inventory. Use a z
-
value
of
1
.
6
4
5
for this calculation. How many croissants should Zainab order?
USING FIXED TIME PERIOD MODEL FORMULA

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