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)(4 pts) What is the amount of safety stock with the current inventory policy?
(b)(4 pts) How many pounds of ground coffee are there in the store on average?
(c)(8 pts) What service level does the store achieve with the current policy?
(d)(8 pts) What fill rate does the store achieve with the current policy?
(e)(8 pts) If the store would like to have a 97.5% service level, what should the reorder point be?
(f)(13 pts) If the store would like to have a 97.5% fill rate, what should the reorder point be?

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