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 pounds lbs with a standard deviation of lbs
assume normal distribution Store manager orders lbs of ground coffee, whenever lbs
of coffee left. Order replenishment lead time is days.
a pts What is the amount of safety stock with the current inventory policy?
b pts How many pounds of ground coffee are there in the store on average?
c pts What service level does the store achieve with the current policy?
d pts What fill rate does the store achieve with the current policy?
e pts If the store would like to have a service level, what should the reorder point be
f pts If the store would like to have a fill rate, what should the reorder point be
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