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Business, 09.10.2019 22:00 sindy35111

Freshjuice has two stores on peachtree street, one on 10thstreet and the other one on 14thstreet. they are just a block away from each other (it takes about 10 min to the other store by walk). the bestseller is fresh orange juice: 2 oranges will be squeezed to make a bottle of it. demands of both stores follow poisson distribution. the average daily demand s 150 bottles at 10thstreet strore and 250 bottles at 14thstreet store. fresh oranges are ordered every morning, and delivered right before (but after placing orders) store opens. it takes 2 days for oranges to be delivered from fresh food distribution center. (you can approximate to normal distribution for thisproblem) a) what order-up-to quantity for each store s(10) and s(14) to ensure 98% in-stock probability? b) what is average on hand inventory level at each store? c) you came up with an idea that what if the inventory is managed together for both stores as they are very close to each other. first idea is to allow the stores to borrow oranges from the other store in case of stock out while each store maintains current basestock policy. what will be the overall in-stock probability? d) another approach is pooling the inventory at policy level. what will be the order-up-to quantity for pooled inventory at the same in-stock probability level (98%)?

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Freshjuice has two stores on peachtree street, one on 10thstreet and the other one on 14thstreet. th...

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