Question: Problem 13.38 Your answer is incorrect. Try again. Kelly's Tavern serves Shamrock draft beer to its customers. The daily demand for beer is normally distributed,

Problem 13.38 Your answer is incorrect. Try
Problem 13.38 Your answer is incorrect. Try again. Kelly's Tavern serves Shamrock draft beer to its customers. The daily demand for beer is normally distributed, with an average of 20 gallons and a standard deviation of 5 gallons. The lead time required to receive an order of beer from the local distributor is 12 days. Determine the safety stock and reorder point If the restaurant wants to maintain a 90% service level. What would be the increase in the safety stock if a 95% service level were desired? (Round z values and final answers to 2 decimal places, e.g. 25.75.) Safety stock for service level of 90% 22.34 gal. X X Reorder point 262.34 gal. Increase in the safety stock 6.24 gal. Click if you would like to Show Work for this question: Open Show Work

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 General Management Questions!