b) The Elite Cafe serves purified bottles of "Wata" to its customers. The daily demand for Wata is normally distributed, with an average demand of 18 bottles and a standard deviation of 4 bottles. The lead time to receive an order of Wata from the local supplier is 3 days. Determine the safety stock and reorder point if the Cafe wants to maintain: i) 90% service level ii) 95% service level

Purchasing and Supply Chain Management
6th Edition
ISBN:9781285869681
Author:Robert M. Monczka, Robert B. Handfield, Larry C. Giunipero, James L. Patterson
Publisher:Robert M. Monczka, Robert B. Handfield, Larry C. Giunipero, James L. Patterson
Chapter16: Lean Supply Chain Management
Section: Chapter Questions
Problem 10DQ: The chapter presented various approaches for the control of inventory investment. Discuss three...
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b) The Elite Cafe serves purified bottles of "Wata" to its
customers. The daily demand for Wata is normally
distributed, with an average demand of 18 bottles and a
standard deviation of 4 bottles. The lead time to receive an
order of Wata from the local supplier is 3 days. Determine
the safety stock and reorder point if the Cafe wants to
maintain:
i) 90% service level
ii) 95% service level
Transcribed Image Text:b) The Elite Cafe serves purified bottles of "Wata" to its customers. The daily demand for Wata is normally distributed, with an average demand of 18 bottles and a standard deviation of 4 bottles. The lead time to receive an order of Wata from the local supplier is 3 days. Determine the safety stock and reorder point if the Cafe wants to maintain: i) 90% service level ii) 95% service level
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