Weekly demand for 12" hot dogs at Mutt's Amazing Dogs is normally distributed with a mean of 2850 and a standard deviation of 425
The store manager continuously monitors inventory and currently orders 500 hot dogs each time the inventory drops to 6000 frames. The manufacturer currently takes two weeks to fill an order. How much safety inventory does the store carry?
What will be an ideal response?
Answer:
ROP = DL + ss
ROP = 600
ss = ROP - DL
= 6000 - (2850 × 2)
= 300
Business
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