Question: Use the information below to answer this question. Demand for bottled water dispensed by the vending machines in Schulze Hall is normally distributed with a

Use the information below to answer this

Use the information below to answer this question. Demand for bottled water dispensed by the vending machines in Schulze Hall is normally distributed with a mean of 100 bottles/day and standard deviation of 10 bottles/day. The vending machines can be replenished (a) either by a perpetual review (Q) system, or (b) periodically during a weekly visit by the vendor with a Vendor Managed Inventory (VMI) system. It costs $50.00 per order to replenish the vending machines and $0.91 to carry a bottle of water in inventory for one year. If the delivery lead- time for the perpetual review (Q) system is normally distributed with a mean of 3 days and standard deviation of 2 days, determine the reorder point (ROP) required for maintaining a service level of 95%. Assume: 7 days/week, 52 weeks/year for all calculations and select your answer that is within + 1.00 or - 1.00 of the correct answer. None of these answers is correct 631 343 329 O 694

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