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Q. A service station uses 1,200 cases of oil a year. Ordering cost is $40 and Yearly carrying cost is $3 per case. The station owner has specified a Yearly service level of 99%. ROP = 77 cases
a. Illustrate what level of safety stock is appropriate if lead time demand is normally distributed with a mean of 80 cases and a standard deviation of 5 cases?
b. Illustrate what is the risk of a stock out during lead time?
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On their farm, the Friendly family grows apples that they harvest each fall and make into three products-apple butter, applesauce, and apple jelly. Propose a linear programming model for this problem. Solve the model by using the computer either ex..
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