Question: Problem 2 : An Italian restaurant uses 2 , 0 0 0 bottles of an imported wine each year. The restaurant operates 5 0 weeks

Problem 2:
An Italian restaurant uses 2,000 bottles of an imported wine each year. The restaurant operates 50 weeks per year, so the average weekly demand of the imported wine is 40 bottles. When stock is replenished, it takes three weeks for an order to arrive, and the standard deviation of demand during lead time is 25 bottles.
The restaurant manager would like to use a Fixed - Order Quantity inventory system to optimize costs while maintaining a 96% service probability.
At what inventory level (reorder point) should the manager place an order?
Problem 2: An Italian restaurant uses 2,000 bottles of an imported

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