Question: PLEASE HELP ASAP! Blue & White Coffee (B&W) orders their organic coffee filters from an international supplier, which results in longer lead times to replenish
PLEASE HELP ASAP!


Blue \& White Coffee (B\&W) orders their organic coffee filters from an international supplier, which results in longer lead times to replenish inventories. B\&W uses 130 filters a day with a standard deviation in daily demand of 11 per day. Considering how important it is to have these organic coffee filters available when needed, they have set their service level at 99.5%(z=2.57) in hopes of avoiding stockouts. It takes 11 days to receive a shipment and the standard deviation of the shipping time is 3 days. What is their reorder point? 1820 filters 2437 filters 2512 filters 1430 filters Buddy's Bar-B-Q makes a great half-chicken entre but would like to determine how many of these entres to prepare on any given day. Due to health department regulations, any of these entres remaining at closing time must be discarded. Each of these half-chicken entres cost $4 to prepare but are sold to customers for $12. What would Buddy's target service level be if the goal was to strike the best balance between shortage costs and excess costs? 75%66%25%33%
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