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Demand for Jammin’ Jelly can be approximated by a Normal distribution and has a mean of 76 jarsper week with a standard deviation of 22 jars per week. The owner wants to ensure jars of Jammin’
Jelly are available 95 percent of the time. Lead time is 2 days and the shop is open seven days aweek (Hint: Work in terms of weeks for the following problems)
a. Calculate the ROP, rounding up to the nearest jar.
b. What would the order size be for a fixed-interval model using the previous informationavailable as well as an order interval of 14 days and a supply of 152 jars at the time ofcounting? Round up to the nearest jar.
c. Upon going to make more Jammin’ Jelly, the employees find that the secret ingredient hasgone bad. A rush order for the secret ingredient is placed right away with the supplier. It willbe delivered the next morning, adding a day to the lead time. If the store currently has 42 jarson hand, what is the probability of stocking out?
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