The Mediterranean Restaurant stocks a red Chilean table wine it purchases from a wine merchant in a

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The Mediterranean Restaurant stocks a red Chilean table wine it purchases from a wine merchant in a nearby city. The daily demand for the wine at the restaurant is normally distributed, with a mean of 18 bottles and a standard deviation of 4 bottles. The wine merchant sends a representative to check the restaurant’s wine cellar every 30 days, and during a recent visit there were 25 bottles in stock. The lead time to receive an order is two days. The restaurant manager has requested an order size that will enable him to limit the probability of a stockout to 5%.

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