Peerless Pies makes various kinds of pie, including pumpkin pies. The demand for pumpkin pies varies, based

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Question:

Peerless Pies makes various kinds of pie, including pumpkin pies. The demand for pumpkin pies varies, based on time of year and other factors. The company wants to determine the reorder point for pumpkins.




	Average pounds of pumpkins needed	60	pounds per week
	Standard deviation of demand	4	pounds per week
	Customer service level desired	97.5%
	Lead time	2	weeks

a	What amount of safety stock is appropriate?




b	Determine the reorder point. (Round up if necessary.)