Delivery to the store typically occurs in one week

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Sam places an order for Cheetos every week. Once the order is placed, delivery to the store typically occurs in one week. Average demand is 100 bags per week and the standard deviation of demand is 20 bags per week.

The store policy is to stock an amount of inventory that allows for an average stockout condition of 10 percent while waiting for replenishment. It is time to place an order, and there are 150 bags on hand. How many should Sam order? (round up to the next whole number)

Reference no: EM132294899

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