Single-period inventory systema local sub shop across town, Ask an Expert

Management Studies

Single-Period Inventory System

A local sub shop across town makes sandwiches every morning to sell to Verizon store employees and customers at lunch time. Sandwiches are sold to customers for $2.25 and cost $0.75 to make. It costs the sub shop $0.25 per sandwich to pick up any leftover sandwiches and dispose of them after lunch time. The average daily demand is 61 sandwiches with a standard deviation of 21 sandwiches.

A) What is the target service level?

B) How many sub sandwiches should be made each day to meet this service level?

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Operation Management, Management Studies

Category:- Operation Management
Reference No.:- M92593266

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