Demand for walnut fudge ice cream at the swan ice cream

Reference no: EM13376472

Demand for walnut fudge ice cream at the Swan Ice Cream Dairy can be approximated by a normal distribution with a mean of 21 gallons per day and a standard deviation of 3.5 gallons per day. The new production manager desires a service level of 90 percent. Lead time is 2 days.

a. What ROP would be consistent with the desired service level?

b. If the manager wants to maintain 10 gallons of safety stock, what would be the corresponding stockout risk?

Reference no: EM13376472

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