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A candy store sells 18 candy bars per day on average with a Standard dev. of 3 candy bars per day. The supply company has an average delivery time of two wks with a standard deviation of two days. The candy store is open for business six dys per wk forty eight weeks of the yr. When they order it costs the candy store ten dollars and eight cents per box per year to stock the candy store.
1-how many boxes of candy should be ordered each time?
2-at what point should a new order be placed if the candy store wishes to keep 95% level of service, assume normal demand and the lead time.
3-How much safety stock should be ordered?
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