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Foodplace market stocks frozen pizzas in a refrigerated display case. The average daily demand for the pizzas is normally distributed, with a mean of eight pizzas and a standard deviation of 2.5 pizzas. A vendor for a packaged food distributer checks the markets 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 vendors following visit there were five frozen pizzas in stock. What is the order size for the next order period? Show your work.

Operation Management, Management Studies

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