An Italian restaurant uses an average of 50 jars of a special spaghetti sauce each week. Weekly usage of spaghetti sauce has a standard deviation of 3 jars. The manager is willing to accept no more than a 10 percent risk of stockout during lead time, which is three weeks. Assume the distribution of usage is normal. Determine the ROP.
D = 50 jars per week LT = 3 weeks
sd = 3 jars per week Service level = 90%

Question

An Italian restaurant uses an average of 50 jars of a special spaghetti sauce each week. Weekly usage of spaghetti sauce has a standard deviation of 3 jars. The manager is willing to accept no more than a 10 percent risk of stockout during lead time, which is three weeks. Assume the distribution of usage is normal. Determine the ROP.
 D = 50 jars per week LT = 3 weeks
 sd = 3 jars per week Service level = 90%

Quizplus · Accepted Answer

The Answer of An Italian restaurant uses an average of 50 jars of a special spaghetti sauce each week. Weekly usage of spaghetti sauce has a standard deviation of 3 jars. The manager is willing to accept no more than a 10 percent risk of stockout during lead time, which is three weeks. Assume the distribution of usage is normal. Determine the ROP.
 D = 50 jars per week LT = 3 weeks
 sd = 3 jars per week Service level = 90%

An Italian Restaurant Uses an Average of 50 Jars of a Special