Problem:
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. Use Table.
Requirement:
Question 1: What ROP would provide a stockout risk of 10 percent during lead time? (Round your answer to the nearest whole number.) ROP 749 units
Question 2: What is the expected number of units (pounds) short per cycle? (Round your answer to 3 decimal places.)