Question: JG started its new branch and introduced a Mighty Double Zinger burger and decided to maintain a service level of 90 percent in this product

JG started its new branch and introduced a Mighty Double Zinger burger and decided to maintain a service level of 90 percent in this product whereas its service level is around 70 percent in other products. In seven days, Manager noticed that the mean demand of this Mighty burger, if distribution is considered as normal, alone was 21 with a standard deviation of 3.5 burgers. As JG opens seven days a week and try to cater mainly students of all sorts. JG tried a lot to reduce its lead time from 2 days to one day but at the moment it failed to do so. Calculate ROP according to the set service level. Also find out supply in day on hand at ROP, assuming average demand. Calculate the order size for 90 percent service level that has order interval of ten days and a supply of 8 burgers on hand at the time of order. Use fixed interval model instead of ROP model. Also inform about the probability of facing a stockout before the order arrive.

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