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Food Place Market stocks frozen pizzas in a refrigerated display case. The average daily demand for the pizzas is normally distributed, with a mean of 8 pizzas and a standard deviation of 2.5 pizzas. A vendor for a packaged food distributor checks the market's inventory of frozen foods every 10 days; during a particular visit there were no pizzas in stock. The lead time to receive an order is three days. Determine the order size for this order period that will result in a 98% service level. During the vendor's following visit there were 5 frozen pizzas in stock. What is the order size for the next order period?

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Operation Management, Management Studies

Category:- Operation Management
Reference No.:- M92589356

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