solution
A store sells hand sanitizer, which is supplied by a chemical manufacturer in a nearby town. The lead time is 10 days. The daily demand for hand sanitizer is normally distributed. The mean of daily demand is 48 bottles with a variance of 25 bottles2. The store wants to keep its stock-out probability at a no more than 4%.
The store is using the periodic-review inventory system. The manufacturer checks the store’s inventory every 15 days. In the most recent visit, the manufacturer found that there were only 4 bottles left. How many bottles were ordered?
Does the store have enough inventory to last until the order comes in, or are they likely to experience a stockout this time?
The store realizes that it is hard to maintain stock and wants to turn to the continuous-review inventory system. To keep the stock-out probability at 4%, what is the safety stock level?
round to the next highest number in the final answers please.
"Looking for a Similar Assignment? Get Expert Help at an Amazing Discount!"
