Suppose that usage of cooking oil at harrys fish fry is


Suppose that usage of cooking oil at Harry's Fish Fry is normally distributed with an average of 15 gallons/day and a standard deviation of two gallons/day. Harry has just fired the manager and taken over operating the restaurant himself. Harry has asked you to help him decide how to reorder cooking oil in order to achieve a service level which is seven times the risk of stockout (7/8). Lead time is eight days.

A) If cooking oil can be ordered as needed, what reorder point should be used?

B) If a fixed interval of 30 days is specified, how much safety stock should Harry carry?

Request for Solution File

Ask an Expert for Answer!!
Other Subject: Suppose that usage of cooking oil at harrys fish fry is
Reference No:- TGS0658496

Expected delivery within 24 Hours