Question: Westgate operates a coffee store at its lobby level. Daily use ( demand ) of ground coffee at the store has an average of 3

Westgate operates a coffee store at its lobby level. Daily use (demand) of ground coffee at the store has an average of 300 pounds (lbs) with a standard deviation of 100 lbs (assume normal distribution). Store manager orders 1000 lbs of ground coffee, whenever 1600 lbs of coffee left. Order replenishment lead time is 4 days.
(a)(8 pts) What fill rate does the store achieve with the current policy?
(b)(13 pts) If the store would like to have a 97.5% fill rate, what should the reorder point be?

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