A restaurant uses and average of 50 jars of a special sauce each week. Weekly usage of sauce has a stanard deviation of 3 jars. The manager is willing to accept no more than a 10 percent risk of stockout during lead time, which is two weeks. Assume the distribution of usage if normal.
1) Which of the four ROP formulas applies to this situation?
2) What is the required service level? What is the z value?
3) Determine the Reorder Point.