*** This is all the information given within this question!

Scenario: Moonbux Caf, Incorporated, is a specialty coffee shop that sells premium coffee and coffee-related products to coffee connoisseurs. While Moonbux had its start as a small local caf in Mount Olive, North Carolina (USA), the company has experienced substantial regional growth and is soon to embark on a campaign to further grow its business nationally and, if things go well, internationally.

Inquiries

Inquiry 1: The Plant Manager comes to your office and shuts your office door. The plant manager says I have been out of college for some time, now. Since you graduated more recently than me (the PM chuckles), I hope you can help me understand how corporate headquarters determined we need to order 713 pounds of coffee. Please show all your work! Here is all the information I have, including notes from my college class.

Moonbux orders all its coffee to be shipped directly from South America. A US-based distributor stops by every foue weeks to take orders. Because the orders are shipped directly from South America, they take three weeks to arrive. Moonbux uses an average of 150 pounds of coffee each week, with a standard deviation of 30 pounds. Moonbux prides itself on offering only the best-quality ingredients and a high level of service, so it wants to ensure a 98 percent probability of not stocking out on coffee. Assume that the sales representative just walked in the door and there are currently 500 pounds of coffee in the temperature and humidity-controlled storage area. How many pounds of coffee would you order? Answer: 713

Use Excel's NORM.S.INV() function to find the z value.

Do not round intermediate calculations. Round z value to 2 decimal places and final answer to the nearest whole number.

z value = NORM.S.INV(probability); in Excel enter =NORM.S.INV(probability) where probability is the probability of not stocking out.

q = d_bar * (T + L) + z*T+L - I

T+L = SQRT((T + L)* 2)