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16-Screen stom View ezto.mheducation.com/hm.tpx connect | Save & Exi.. Sutra Question 9 (of14) 0.00 points MC Qu. 29 Bill\'s Food Emporium uses the... Bill\'s Food Emporium uses the periodic system to order cans of Cajun sedsoning every 30 days. It typicoly ales the supplier 10 days to resupply Bil Sales average 8 units per day with a standard deviation of 2 units per day Bde not carry any safety stock of Cajun seasoning. If he runs out for a period of time, he doesn\'t care Bil just counted inventory of Cajun seasoning and found 22 cans on the shelf. How many cans should Bill order? 342 0218 O 252 298 2 tab caps lock

Solution

The Protection Period = Order frequency + Lead time to respond = 30 days + 10 days = 40 days

Since there is no safety stock requirement, The optimum reorder point without any buffer ( safety ) inventory

= Average Daily demand x Protection period

= 8 x 40

= 320 cans

However Buffer inventory = 22 cans

Therefore, number of Cans Bill should order = Reorder point – Buffer Inventory = 320 – 22 = 298 Cans

BILL SHOULD ORDER 298 CANS

BILL SHOULD ORDER 298 CANS