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Dog Lovers Food (DLF) is the distributor of a very popular dog food. The weekly demand at DLF is 500 cans on average. The standard deviation of weekly demand is 100 cans. DLF purchases the food from Delicious Dog Foods, Inc. (DDFI). DDFI can deliver orders in 3 weeks. DLF wants to achieve 99% availability. (The z-score corresponding to 99% availability is z=2.33.)
What is the optimal reorder point?
a) between 0 and 400
b) between 401 and 800
c) between 801 and 1,200
d) between 1,201 and 1,600
e) between 1,601 and 2,000
f) between 2,001 and 2,400
g) 2,401 or more
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