You are ordering milk for Mr. Ds supermarket, and you are determined to please. Milk is delivered
Question:
You are ordering milk for Mr. D’s supermarket, and you are determined to please. Milk is delivered once a week (at midnight Sunday). The mean and standard deviation of the number of gallons of milk demanded each day are given in the file S04_80.xlsx. Find the mean and standard deviation of the weekly demand for milk. What assumption must you make to determine the weekly standard deviation? Presently you are ordering 1000 gallons per week. Is this a sensible order quantity? Assume all milk spoils after one week.
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