Suppose that usage of cooking oil at Harry's Fish Fry is normally distributed with an average of 15 gallons/day and a standard deviation of two gallons/day.Harry has just fired the manager and taken over operating the restaurant himself.Harry has asked you to help him decide how to reorder cooking oil in order to achieve a service level which is seven times the risk of stock out (7/8).Lead time is eight days.
(i)If cooking oil can be ordered as needed,what reorder point should be used?
(ii)If a fixed interval of 30 days is specified,how much safety stock should Harry hold?

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The Answer of Suppose that usage of cooking oil at Harry's Fish Fry is normally distributed with an average of 15 gallons/day and a standard deviation of two gallons/day.Harry has just fired the manager and taken over operating the restaurant himself.Harry has asked you to help him decide how to reorder cooking oil in order to achieve a service level which is seven times the risk of stock out (7/8).Lead time is eight days.
(i)If cooking oil can be ordered as needed,what reorder point should be used?
(ii)If a fixed interval of 30 days is specified,how much safety stock should Harry hold?

Suppose That Usage of Cooking Oil at Harry's Fish Fry