Question: Need quick, neat, explanatory answer with calculations in excel. Question No 2 - Gas Station A gas station near the M1 Motorway is revaluating its

Need quick, neat, explanatory answer with

Need quick, neat, explanatory answer with

Need quick, neat, explanatory answer with calculations in excel.

Question No 2 - Gas Station A gas station near the M1 Motorway is revaluating its diesel fuel reorder point, i.e. the diesel fuel level in its main tank triggering a replenishment order. The daily demand faced by the station for diesel is normally distributed with an average of 8000 liters and a standard deviation of 2500 liters. After the manager places his order , he knows that he will receive it with an exact lead time of 3 days. (Assume that orders are made immediately after the reorder point is reached and that the demand on each day is independent from the other) Q1- What should the reorder point be set to in order to ensure that the stations chance of a stock out during the replenishment cycle is limited to a probability of 2%? Q2- The manager of the gas station is worried she may have underestimated the variability of demand. Assuming she implements the re-order point from the previous part, what will be the stockout probability if the standard deviation of demand is , in fact 3000 litres

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