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
probability of not stocking out. To illustrate the
recommended procedure, consider the ordering policy for croissants. The annual
demand for croissants is
units The bakery operates
days a year. Every
week
days
inventory is counted, and a new order is placed. It takes
days for
the croissants to be delivered. The standard deviation of daily demand for
croissants is
units Currently, there are
croissants in inventory. Use a z
value
of
for this calculation. How many croissants should Zainab order?
USING FIXED TIME PERIOD MODEL FORMULA
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