3. A restaurant uses an average of 8 jars of a special sauce every day. When...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
3. A restaurant uses an average of 8 jars of a special sauce every day. When they place an order, the jars arrive to the restaurant in a day (lead time is 1 day). Daily usage of sauce has a standard deviation of 3 jars. They think their demand during the lead time can be modelled with normal distribution. The manager is willing to accept no more than a 10 percent risk of stockout during lead time which is two weeks. Assume the distribution of the usage is normal and calculate at which level of inventory a new order needs to be placed (i.e. calculate the reorder-point(ROP)). (25 points) 3. A restaurant uses an average of 8 jars of a special sauce every day. When they place an order, the jars arrive to the restaurant in a day (lead time is 1 day). Daily usage of sauce has a standard deviation of 3 jars. They think their demand during the lead time can be modelled with normal distribution. The manager is willing to accept no more than a 10 percent risk of stockout during lead time which is two weeks. Assume the distribution of the usage is normal and calculate at which level of inventory a new order needs to be placed (i.e. calculate the reorder-point(ROP)). (25 points)
Expert Answer:
Answer rating: 100% (QA)
To calculate the reorder point ROP for the restaurants special sauce we need to consider the average ... View the full answer
Posted Date:
Students also viewed these accounting questions
-
A large law firm uses an average of 10 packages of copier paper a day. Each package contains 500 sheets. The firm operates 260 days a year. Storage and handling costs for the paper are $1 per year...
-
A large electronics repair shop uses an average of 85 capacitors a day. The standard deviation is 5 units per day. The buyer follows this rule: Order when the amount on hand and on order drops to 625...
-
A large law firm uses an average of 40 boxes of copier paper a day. The firm operates 260 days a year. Storage and handling costs for the paper are $ 30 a year per box, and it costs approximately $...
-
List the key principles of the six Sigma philosophy. How does it differ from TQM?
-
The electric field lines surrounding three charges are shown in FIGURE 19-43. The center charge is q2 = -22.8 C. (a) What are the signs of q1 and q3? (b) Find q1. (c) Find q3. Figure 19-43 -E field...
-
Given that all automobiles are unsafe to some degree, where do you draw the line on product safety? How safe is safe enoughand who decides? pg69
-
Discuss methods for controlling communications to ensure that information needs are met throughout the life of the project? LO.1
-
Direct labor variances In addition to the information for Acme Company in Mini-Exercises 15.1 and 15.2, the standard direct labor cost per unit consists of 0.5 hour of labor time at $20 per hour....
-
Use the information provided below, for KA Furniture Stores for the month of May 20.7, to answer questions 12 to 14: KA Furniture Stores is a furniture shop operating in Ivory Park. The following...
-
The Specialty Department Stores, Inc. chief executive officer (CEO) has asked you to compare the company's profit performance and financial position with the averages for the industry. The CEO has...
-
We have the following data about the aggregate production in China in 2019. variable value Real GDP (millions of 2017 US$) 20,572,606 Population (millions) 1,433.784 Capital (millions of 2017 US$)...
-
Complete Exercises 2-B and 2-H in Writing and Analysis in the Law using what you learned in the reading and in the Seminar. Use paragraph form, use complete sentences, and make sure you use proper...
-
What is the value of a stock expected to be in 9 years if the annual dividend is expected to remain unchanged forever at $3.65, the expected rate of return is 6.9% per year, and the next dividend is...
-
Once invested IN a corporation, shareholders want their money out - they want a return on investment! John owns 2 5 % of REFUND CORP INC, which paid out a $ 5 0 , 0 0 0 distribution to him on 1 2 / 3...
-
Worksheet Financial Statement Ratios. Lowe's Companies, Inc Jan 28, 2022 and Jan. 29, 2021 Current Ratio Current Assets / Current Liabilities Acid Test Current Assets Current Liabilities (Cash + ST...
-
3. Peter Senen operates in a JIT manufacturing system. For August, Peter Senen purchased 10,000 units of raw materials at P1.00 per unit on account.What is the The journal entry to record the...
-
First National Bank of Huron is considering installing three ATMs in its westside branch. The new machines are expected to cost $ 48.000 a piece. Installation costs will amount to about $ 32.000 per...
-
Read Case Study Google: Dont Be Evil Unless and answer the following: Given its mission of providing information to the world, should Google censor searches in China?
-
P Company acquired 100% of the common stock of the S Company for an agreed-upon price of $800,000. The book value of the net assets is $600,000, which includes $50,000 of subsidiary cash equivalents....
-
Company P had internally generated net income of $200,000 (excludes share of subsidiary income). Company P has 100,000 shares of outstanding common stock. Subsidiary Company S has a net income of...
-
appreciate contemporary developments in understanding and applying marketing ideas and their implications for strategic marketing. AppendxiLO1
![Mobile App Logo](https://dsd5zvtm8ll6.cloudfront.net/includes/images/mobile/finalLogo.png)
Study smarter with the SolutionInn App