Operations Management buys sugaldistributor to use in baking cakes.Typically, they use 30 pounds of sugarin a day. But depending on the day,they may use a little bit less or more. Itis estimated that the standarddeviation of demand for sugar is 3 lbsper day. It takes 4 days from the timethe bakery orders sugar until thedistributor delivers the sugar. Themanager wants to have a service levelof 0.8. Determine each of thefollowing, assuming that demand isdistributed normally.Z value for the intended service level:The safety stock that will provide theintended service level:The ROP that will provide theintended service level:

Reorder point is the minimum level of inventory established by an organization that is also a signal…

Answered: Duys sugal distributor to use in baking…

Practical Management Science

6th Edition

ISBN:9781337406659

Author:WINSTON, Wayne L.

Publisher:WINSTON, Wayne L.

Chapter2: Introduction To Spreadsheet Modeling

Section: Chapter Questions

Problem 20P: Julie James is opening a lemonade stand. She believes the fixed cost per week of running the stand...

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