Demand for walnut fudge ice cream

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Demand for walnut fudge ice cream at the Sweet Cream Dairy can be approximated by a normal distribution with a mean of 25 gallons per week and a standard deviation of 4.5 gallons per week. The new manager desires a service level of 90 percent. Lead time is two days, and the dairy is open seven days a week. (Hint: Work in terms of weeks.) If a fixed-interval model is used, what order size would be needed for the 90 percent service level with an order interval of 12 days and a supply of 15 gallons on hand at the order time?

Reference no: EM132193619

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