Question

George is the manager of KFC restaurant in Lawrence, KS. He has learned from the past that whenever he ordered supplies from the headquarter in Kentucky, it usually takes 6 days to reach Lawrence. (i.e., the lead time here is 6 days). He just got a notice that the inventory of chicken‐ wings in‐stock now is 2,000. Weekly sales of chicken‐wings is approximately normally distributed with a mean of 1800 and a standard deviation of 360. Assume there are 7 working days in a week.

(a) Characterize the lead time demand distribution for the chicken‐wings (i.e., write down the distribution and its parameters). [10 pts]

(b) If George orders today, is he going to be able to achieve the service level target of 90%? (Show your calculations in order to get credit from this question.) [8 pts]

Answer 1