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The Subway Sandwich staff on Monroe, NY uses an average of 60 packets of special seasoning every day. This demand is normally distributed with a standard deviation of 15 packets. Since this is an important item, they have decided

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The Subway Sandwich staff on Monroe, NY uses an average of 60 packets of special seasoning every day. This demand is normally distributed with a standard deviation of 15 packets. Since this is an important item, they have decided on a 98% service level (Z = 2.05). Delivery trucks run infrequently, so the lead time for delivery is 12 days on average with a standard deviation of 2 days. Lead time is also normally distributed. How much the average safety stock &reorder point would be on a 95% service level (Z=1.64)

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Operations management

Operations management

ISBN: 978-0132163927

10th edition

Authors: Jay Heizer, Barry Render

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