Problem 805004:
Do not include anything other than numbers in your responses. For example, do not include comma or dollar sign in your numbers. As a rule of thumb, keep 2 decimal places for larger numbers and 3 decimal places for smaller numbers less than 1.
Demand for walnut fudge ice cream at the Sweet Cream Dairy can be approximated by a normal distribution with a mean of 110 gallons per week and a standard deviation of 15 gallons per week. The new manager desires a service level of 70 percent. Lead time is 2 days, and the dairy is open seven days a week (Hint: work in terms of weeks).
What is the Z value for the desired service level?
How many (fraction of) "weeks" is the lead time?
If we use a continuous inventory system, what safety stock level would be consistent with the desired service level?
If we use a continuous inventory system, what ROP would be consistent with the desired service level?