Question

Demand for walnut fudge ice cream at the Sweet Cream Dairy can be approximated by a normal distribution with a mean of 19 gallons per week and a standard deviation of 6.8 gallons per week. The new manager desires a service level of 90 percent. Lead time is two days, and the dairy is open seven days a week. (Hint: Work in terms of weeks.) Use Table B and Table B1.

a-1. If an ROP model is used, what ROP would be consistent with the desired service level? (Do not round intermediate calculations. Round your final answer to 2 decimal places.) ROP gallons

a-2. How many days of supply are on hand at the ROP, assuming average demand? (Do not round intermediate calculations. Round your final answer to 2 decimal places.) Days

b-1. If a fixed-interval model is used instead of an ROP model, what order size would be needed for the 90 percent service level with an order interval of 8 days and a supply of 8 gallons on hand at the order time? (Do not round intermediate calculations. Round your final answer to the nearest whole number.) Order size gallons

b-2. What is the probability of experiencing a stockout before this order arrives? (Do not round intermediate calculations. Round your final answer to the nearest whole percent. Omit the "%" sign in your response.)

Answer 1