1.At a stote, demand during leadtime for bottoles of milk is normal with a mean

Question

1.At a stote, demand during leadtime for bottoles of milk is normal with a mean of 50 and standard deviation of 15. How many additional bottles of milk must be on-hand when placing the order so that the service level is increased from 50% to 80%

2. my mom sells 10 boxes of homemade chocolate everyday. Lead time for delivery is normally distributed with a mean of 6 days and standard deviation of 3 days and a service level of 98% is used. If the service level is dropped to 90%, what is the difference between two ROPs

3.  selling baskets of eggs. If demand is normal with a mean of 200 and a standard deviation of 50, how many baskets should the shop stock in inventory if service level must be greater than 95%?

Please round your Z to 2 decimal places. Round up your answer to next nearest integer.

Explanation / Answer

1)

Reorder point = Demand during lead time + Safety stock

Safety stock =Z* standard deviation

For Service level = 50%

Z = 0

Reorder point = 50+0 = 50

For Service level = 80%

Z = 0.84

Reorder point = 50 + 0.84*15 = 62.6

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