Question: 13. (**) Refer to Problem 11. Average weekly demand for free-range dog biscuits is 80 bags per week, with a standard deviation of 16 bags.

13. (**) Refer to Problem 11. Average weekly demand for free-range dog biscuits is 80 bags per week, with a standard deviation of 16 bags. Ollah uses a continuous inventory review system to manage inventory of the biscuits.

Ollah wants to set the reorder point high enough that there is only a 5% percent chance of running out before the next order comes in. Assuming the lead time is a constant 2 weeks, what should the reorder point be?

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