Maurice Tutor

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Category > Management Posted 27 Feb 2018 My Price 6.00

Sweet Cream Dairy

20.   Demand for walnut fudge ice cream at the Sweet Cream Dairy can be approximated

by a normal distribmion with a mean of 21 gallons per week and a standard deviation of

3.5 gallons per week. The new manager desi res a service level of 90 percent. Lead time is cwo days, and tht:! dairy is open seven days a week. (.Hint: Work in terms of  weeks.)

a .  lf an  ROP model is used, what  ROP  would  be consistent with  the desired service level?

b.      If a fixed-interval model is used instead of an ROP model, what order size would be needed for the 90 percent service level with an order interval of  10 days and  a supply of 2 gallons on hand at the order time?

c.       Suppose the manager is using the ROP model described in p;1rt a . One day after plac­ ing an order wi th the supplier, the manager receives a call from  the supplier that  the order will  be delayed bc:cause  of problems at the supplier's plant. The supplier promises to have the  order chere i n  two days. After hanging  up, the manager checks the supply of walnut fudge ice cream  and finds tbat 2 gallons  have  been sold since the order was placed.  Assuming  the supplier's promise is valid, what is the probabili ty that the dairy will  run out of this flavor before  the sh ipment arrives?

 

Answers

Maurice Tutor
(5)
Status NEW Posted 27 Feb 2018 09:02 PM My Price 6.00

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