The Wonderful Hair Salon buys lots of shampoos. Wonderful follows the exponential-smoothing forecasting method, and based on their forecast calculations, annual demand is 750 units. Wonderful normally pays $3.00 per shampoo bottle when ordering from its supplier. Each order that is placed with the supplier costs $18 to process. Wonderful's holding cost for shampoos is 15% of the cost of the shampoo bottle per year.
-Susan's Eatery makes and delivers pad thai for lunch to residential customers and wants to know the reorder point for the custom-made lunch boxes, given the following information: Average daily demand is 100 pad thai lunches, with a daily standard deviation of 17 lunches. The lead time for lunch box purchases is 4 days. Susan's Eatery wants a 95% service level. Calculate the reorder point.

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The Answer of The Wonderful Hair Salon buys lots of shampoos. Wonderful follows the exponential-smoothing forecasting method, and based on their forecast calculations, annual demand is 750 units. Wonderful normally pays $3.00 per shampoo bottle when ordering from its supplier. Each order that is placed with the supplier costs $18 to process. Wonderful's holding cost for shampoos is 15% of the cost of the shampoo bottle per year.
-Susan's Eatery makes and delivers pad thai for lunch to residential customers and wants to know the reorder point for the custom-made lunch boxes, given the following information: Average daily demand is 100 pad thai lunches, with a daily standard deviation of 17 lunches. The lead time for lunch box purchases is 4 days. Susan's Eatery wants a 95% service level. Calculate the reorder point.

The Wonderful Hair Salon Buys Lots of Shampoos