If the manager decides to set the target replenishment


The Truly Canadian Restaurant stocks a private red table wine that it purchases from a local winery in the Niagara Falls region. The daily demand for the wine at the restaurant is normally distributed with a mean of 18 bottles and a standard deviation of 4 bottles. The winery sends a representative to check the restaurant’s wine cellar every 30 days. The lead time to receive an order is two days. a. Can you help the restaurant manager to determine the safety stock and the target replenishment level that will enable him to limit the probability of a stockout to 5%? b. During one visit there were 25 bottles in stock, how many bottles should be ordered? c. If the manager decides to set the target replenishment level to be 600 bottles, what will be the stockout probability?

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Operation Management: If the manager decides to set the target replenishment
Reference No:- TGS02906106

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