The Subway Sandwich staff on Monroe; NY uses an average of 100 packets of special seasoning...
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The Subway Sandwich staff on Monroe; NY uses an average of 100 packets of special seasoning every day. This demand is normally distributed with a standard deviation of 10 packets. Since this is an important item, they have decided on a 95% service level (Z = 1.64). Delivery trucks run infrequently, so the lead time for delivery is 10 days on average with a standard deviation of 3 days. Lead time is also normally distributed. a) What is the expected demand during lead time? b) What is the standard deviation of demand during lead time? c) What is the average safety stock? d) What is the reorder point? e) If the company desired to reduce standard deviation of lead time to +/- 2 days, what will be the ROP point? The Subway Sandwich staff on Monroe; NY uses an average of 100 packets of special seasoning every day. This demand is normally distributed with a standard deviation of 10 packets. Since this is an important item, they have decided on a 95% service level (Z = 1.64). Delivery trucks run infrequently, so the lead time for delivery is 10 days on average with a standard deviation of 3 days. Lead time is also normally distributed. a) What is the expected demand during lead time? b) What is the standard deviation of demand during lead time? c) What is the average safety stock? d) What is the reorder point? e) If the company desired to reduce standard deviation of lead time to +/- 2 days, what will be the ROP point?
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a Ex pected demand during lead time is 1000 packets 100 packets x 10 days b Sta... View the full answer
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