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Weekly Demand for Corn Tortillas at Big Truck Tacos Is

Question 95

Essay

Weekly demand for corn tortillas at Big Truck Tacos is normally distributed with a mean of 1500 and a standard deviation of 300.Marco's takes one and one half weeks to supply a Big Truck order.Big Truck is targeting a CSL of 95 percent and monitors its inventory continuously.How much safety inventory of corn tortillas should Big Truck carry? What should their ROP be?

Correct Answer:

verifed

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ss = Fs-1(CSL)× σL
=...

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