Periodic Review System The grocery store you work for uses a weekly periodic sys
ID: 2646310 • Letter: P
Question
Periodic Review System
The grocery store you work for uses a weekly periodic system to maintain the inventory of bottles of ketchup it sells. Below is the sales data for the last 5 weeks.
Week of
3/8/15
3/15/15
3/22/15
3/29/15
4/5/15
Units Sold
106
92
81
102
84
a- What is the companys average weekly demand for bottles of ketchup?
b- Assume the standard deviation of demand is 10.9 bottles and the company wants to be in stock at least 80% of the time. What is the appropriate restocking level?
c- If there are currently 47 bottles of ketchup on hand when the order is placed on 4/13, how many bottles of ketchup should be ordered
Week of
3/8/15
3/15/15
3/22/15
3/29/15
4/5/15
Units Sold
106
92
81
102
84
Explanation / Answer
a. the average weekly demand= 465/5= 93
b. the restoking level is = 93*0.8= 74 units (74.4 units)
c. they should be order for 46 units
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