Neds natural foods sells unshelled peanuts by the pound, Ask an Expert

Management Studies

Ned's Natural Foods sells unshelled peanuts by the pound. Historically, Ned has observed that daily demand is normally distributed with a mean of 80 pounds and a standard deviation of 10 pounds. Lead time also appears normally distributed with a mean of eight days and a standard deviation of one day.

a. What ROP would provide a stockout risk of 10 percent during lead time?

b. What is the expected number of units (pounds) short per cycle?

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Operation Management, Management Studies

Category:- Operation Management
Reference No.:- M91595207

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