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Determine an inventory policy for wine that yields

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Reference no: EM132218431

Question :

When working assume that a restaurant serves an average of 5,000 bottles of wine per year. The standard deviation of the annual demand for wine is 1,000 bottles.

The annual holding cost for a bottle of wine is $1. It costs $10 to place an order for wine, and it takes an average of three weeks (with a standard deviation of one week) for the wine to arrive.

Determine an inventory policy for wine that yields a 99-percent service level.

Reference no: EM132218431

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