Business, 25.04.2020 01:28 patienxel

Demand for walnut fudge ice cream at the Sweet Cream Dairy averages 5.9 gallons per day. The dairy uses a continuous review (reorder point) policy with a two-day lead time. The variance of daily demand during is 2.9.
Assuming a normal distribution and a desired service level of 93%, what is the optimal reorder point and safety stock?

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Demand for walnut fudge ice cream at the Sweet Cream Dairy averages 5.9 gallons per day. The dairy u...