What service level does store achieve with current policy

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Reference no: EM132264776

Daily demand for ground coffee at a Whole Foods store is normally distributed with a mean of 100 pounds (lbs) and a standard deviation of 50 pounds. Store manager continuously monitors the inventory of coffee and currently orders 1,000 lbs of coffee each time the inventory drops to 410 lbs. Whole Foods’s coffee supplier BlackBean takes 4 days to fill an order.

a. How much safety inventory does the store carry with the current inventory policy?

b. What service level does the store achieve with the current policy?

c. On average, how many pounds of ground coffee are there in the store?

d. On average, how many days does a pound of coffee sit in the store before being sold?

e. If the store would like to have a 99% service level, what should the reorder point be?

Reference no: EM132264776

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