Demand for walnut fudge ice cream at the sweet cream dairy
Question # 00768003
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Updated on: 06/26/2020 12:47 PM Due on: 07/01/2020
Demand for walnut fudge ice cream at the Sweet Cream Dairy can be approximated by a normal distribution with a mean of 21 gallons per week and a standard deviation of 3.5 gallons per week. The new manager desires a service level of 90%. Lead time is 2 days, and the dairy is open 7 days a week. (HInt: Work in terms of weeks)
a. If 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 % service level with an order interval of 10 days and a supply of 2 gallons of hand at the order time?
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