Question: help answer Problem 2 (Periodic Review Model) In addition to stocking coffee, tea and pastries where management uses the fixed order quantity inventory management model,

help answer

help answer Problem 2 (Periodic Review Model) In
Problem 2 (Periodic Review Model) In addition to stocking coffee, tea and pastries where management uses the fixed order quantity inventory management model, Centennial Caf also needs to stock cups. As cost is quite important to Caf management, they have found a Canadian supplier but it takes three weeks from time of order to receipt. To make the process simple, management has decided to place an once per week on Fridays (the review period). Weekly demand for cups averages 50 boxes. The standard deviation for the lead-time including review period is 10 boxes. The inventory holding cost is $4/year/box and ordering cost per order is $25. Since a shortage of cups would upset some students, they want their service level is to 95%. Q8. Calculate what the best order up to quantity would be for cups. Q9. At the start of this week, there are 10 boxes in inventory and 12 boxes on order. How many boxes should they order? Q10. If any of the key ingredients or cups were out of stock, Centennial Caf management would worry that the students would rebel. What could Centennial Caf management due to minimize the likelihood of students rebelling

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 Business Writing Questions!