What is implied cost of shortage per quart

Assignment Help Operation Management

Reference no: EM132147336

A small grocery store sells fresh produce, which it obtains from a local farmer. During the strawberry season, demand for fresh strawberries can be reasonably approximated using a normal distribution with a mean of 44 quarts per day and a standard deviation of 4 quarts per day. Excess costs run .30 cents per quart. The grocer orders 50 quarts per day.

Use Table.

a. What is the implied cost of shortage per quart? (Round your z value to 2 decimal places, your service level probability to 4 decimal places and your final answer to 2 decimal places. Omit the "$" sign in your response.)

Shortage cost per quart_________________ $

Reference no: EM132147336

Questions Cloud

Important implications for health system design : Which childhood characteristics have important implications for health system design? Which health services are currently available for children?

Consumers attitude towards ads and influence persuasion : How do the central and peripheral cues in advertisements influence consumers’ attitude towards ads and influence persuasion?

Constructing flowchart-scheduling meeting marion : Constructing a Flowchart: Scheduling a Meeting Marion read that even the most routine tasks can be flowcharted and that when they are,

Sustainable competitive advantages of adult beverages : The four criteria for sustainable competitive advantages of adult beverages.

What is implied cost of shortage per quart : What is the implied cost of shortage per quart?

Decide on optimal order quantity and safety stock : A company serves two markets in North America and has to decide on optimal order quantity and safety stock.

Instructions given all the corporate scandals : Instructions Given all the corporate scandals in recent years, there are ample real world examples of corporate wrongdoing to study

What rop would be consistent with the desired service level : What ROP would be consistent with the desired service level? How many days of supply are on hand at the ROP, assuming average demand?

Discuss the three methods for choosing an arbitrator : Discuss the three methods for choosing an arbitrator. Describe how DRP helps bridge the gap between the market and the factory

User Account

All Pages