Neds Natural Foods Daily demand for peanuts normally distrib

Ned\'s Natural Foods Daily demand for peanuts normally distributed Mean 80 lb Standard Deviation 10 lb Lead Time normally distributed Mean 8 days Standard Deviation 1 day Acceptable Stockout Risk during Lead Time is 10% What is the desired Service Level? What is the corresponding value of z? What is the Expected Demand during Lead Time? What is the Safety stock? What is the Reorder Point (ROP)?

Solution

The desired service level is 8 days.

The expected demand during lead time is same as the population mean mu=8 days.