Cake company uses 4,629 quart bottles of Chocolate sauce each year. The sauce costs 5 per bottle nd is served only in full bottles for food safety purposes. The company's inventory manager alculated that each time an order is placed, it costs 13 and holding costs are 20 percent of the purchase price. Once the order is placed, it takes 3 weeks for an order to arrive. The company works For 47 weeks per year. The company is considering to use the inventory system techniques which minimizes the inventory cost. Assume that both, lead time and customer demand are variable. Customer demand's standard deviation 27 units per week and standard deviation for lead time 1. Find out the safety stock needed to achieve 95% customer service level.

Cake company uses 4,629 quart bottles of Chocolate sauce each year. The sauce costs 5 per bottle nd is served only in full bottles for food safety purposes. The company's inventory manager alculated that each time an order is placed, it costs 13 and holding costs are 20 percent of the purchase price. Once the order is placed, it takes 3 weeks for an order to arrive. The company works For 47 weeks per year. The company is considering to use the inventory system techniques which minimizes the inventory cost. Assume that both, lead time and customer demand are variable. Customer demand's standard deviation 27 units per week and standard deviation for lead time 1. Find out the safety stock needed to achieve 95% customer service level.

Algebra: Structure And Method, Book 1

(REV)00th Edition

ISBN:9780395977224

Author:Richard G. Brown, Mary P. Dolciani, Robert H. Sorgenfrey, William L. Cole

Publisher:Richard G. Brown, Mary P. Dolciani, Robert H. Sorgenfrey, William L. Cole

Chapter2: Working With Real Numbers

Section2.3: Rules For Addition

Problem 8P

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