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Title: Weekly demand for avocados at the Guac Shop is normally distributed with a mean of 2500 and a ... Post by: daliqiqi on Jan 30, 2018 Weekly demand for avocados at the Guac Shop is normally distributed with a mean of 2500 and a standard deviation of 650.
The store manager has decided to follow a periodic review policy to manage inventory of avocados. They plan to order every two weeks. The farmers currently take two weeks to fill an order. Given a desired CSL of 97.5 percent, how much safety inventory should the Guac Shop carry? What should their OUL be? What will be an ideal response? Title: Weekly demand for avocados at the Guac Shop is normally distributed with a mean of 2500 and a ... Post by: drawnblud on Jan 30, 2018 Answer:
ss = Fs-1(CSL) T + L = NORMSINV(0.975) (650 ) = 2547.95 2548 OUL = DT + L + ss = 2500(4) + 2548 = 12,548 |