Question: This represents sales data for the past 50 days for bottles of Brambles juice at a grocery store. Replenishment from a nearby warehouse occurs every
This represents sales data for the past 50 days for bottles of Brambles juice at a grocery store. Replenishment from a nearby warehouse occurs every 10 days. It takes 3 days from the time an order is placed to the time of replenishment. This replenishment period is represented by the cells highlights in green. The grocery stores safety stock of Brambles juice must last for all three days, and so it therefore must take all three days worth of demand into account. Assume that the standard deviation of demand for Brambles Juice is 11.09 bottles. In order to have a service level of 95% during the replenishment period, how many bottles of juice should the store keep in safety stock?
| Day | Demand |
| 1 | 62 |
| 2 | 43 |
| 3 | 63 |
| 4 | 48 |
| 5 | 58 |
| 6 | 65 |
| 7 | 51 |
| 8 | 62 |
| 9 | 41 |
| 10 | 49 |
| 11 | 68 |
| 12 | 41 |
| 13 | 50 |
| 14 | 55 |
| 15 | 61 |
| 16 | 61 |
| 17 | 57 |
| 18 | 40 |
| 19 | 64 |
| 20 | 42 |
| 21 | 49 |
| 22 | 64 |
| 23 | 64 |
| 24 | 46 |
| 25 | 38 |
| 26 | 62 |
| 27 | 47 |
| 28 | 65 |
| 29 | 38 |
| 30 | 48 |
| 31 | 59 |
| 32 | 66 |
| 33 | 33 |
| 34 | 37 |
| 35 | 54 |
| 36 | 39 |
| 37 | 59 |
| 38 | 67 |
| 39 | 66 |
| 40 | 37 |
| 41 | 37 |
| 42 | 57 |
| 43 | 49 |
| 44 | 37 |
| 45 | 52 |
| 46 | 51 |
| 47 | 44 |
| 48 | 55 |
| 49 | 44 |
| 50 | 53 |
Step by Step Solution
There are 3 Steps involved in it
Get step-by-step solutions from verified subject matter experts
