What would be the increase in the safety stock

Reference no: EM13338414

Kelly's Tavern serves Shamrock draft beer to itscustomers. The daily demand for beer is normally distributed, with an average of 20 gallons and a standard deviation of 4gallons. The lead time required to receive an order of beer fromthe local distributor is 12 days. Determine the safety stock and reorder point if the restaurant wants to maintain a 90% servicelevel. What would be the increase in the safety stock if a 95%service level were desired?

Reference no: EM13338414

Questions Cloud

Its cost could be reduced and more people could afford it : Henry Ford (American founder of the Ford Motor Company) introduced Model T automobile and tried his best to make it ideal so that its cost could be reduced and more peoplecould afford it.

Mediterranean restaurant stocks a red chili table wine : The Mediterranean Restaurant stocks a red Chili table wine it purchases from a wine merchant nearby city. The daily demand forthe wine at the i rant is normally distributed, with a mean of 18and a standard deviation of 4 bottles.

Part of a mission statement of telecom company : To deliver high-quality, flexible and innovative solutionsthat are cost effective and conducive”. Above mentioned statement is a “part of a mission statement” of a telecom company. After reading it, you arerequired to analyze it carefully and mention..

Economist suggest to increase the revenue : In the early 2005’s, a medium-sized college had a rush inenrollment and built some rooms to house the additional students.Later on the enrollment dropped again and the college had a lot ofempty rooms. They had a big interest bill on the money they ha..

What would be the increase in the safety stock : Kelly's Tavern serves Shamrock draft beer to itscustomers. The daily demand for beer is normally distributed, with an average of 20 gallons and a standard deviation of 4gallons. The lead time required to receive an order of beer fromthe local distri..

B-galactoside permease problem : You have discovered a new strainof E.Coli that has a mutation in the lacoperator region that causes the wild-type repressor protein to bindirreversibly to the operator. You name this operator mutantOsb for"superbinding" operator.

Flexible and innovative solutions that are cost effective : “To deliver high-quality, flexible and innovative solutions that are cost effective and conducive”.

What circumstances is imitation likely to beem braced : How do you account for the reluctance of competitors to imitate the successful efforts of another firm in their industry? Under what circumstances is imitation likely to beembraced?

What would you suggest that how conflict should be resolved : The HR Manger and Training & DevelopmentManager of "Orient Associates" has a conflict on the mode of upcoming training program for their engineers. Both the managersare strict to their own stances and none of them are willing toaccept other’s point o..

User Account

All Pages