Demand for gallons of milk (a perishable item) is normally distributed with a weekly mean of 50 and standard deviation of 15. How many additional gallons of milk must be stocked to increase the service level from 50% to 80%?
What will be an ideal response?
Z for 50% is 0, Z for 80% is .84. Thus, the increase in milk stock would be 15(.84 ) - 15(0 ) = 12.6 = 13 gallons extra.
Business
You might also like to view...
The __________ is responsible both for the cloud infrastructure and for the control of data and operations within a public cloud
What will be an ideal response?
Business
All of the following are questions that corporate strategists must answer except ________
A) In which business arenas should a company compete? B) How many different strategic options are available? C) How will entry into a new industry help us compete in our other businesses? D) How can we add value to our various lines of business?
Business