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shelf space in the grocery business is a valuable asset. Every good supermarket spends a significant effort attempting to determing the optimal shelf space allocation across products Many factors relevant to this decision: the probability of the each product, the size f each product, the demand characteristic of each product, and so forth. Consider Hot Bull corn chips, a local favorite, average daily demand for this product is $5 , with a standard deviation of 30. . Bags of hot bull can be stacked 20 deep per facing. ( A facing is width on a shelf required to display one item of a product) delivers from Southern fresh central warehouse occur two days after a store manager submits an order. A) how many facings are needed to be 98.75 percent in stock probability ? B) Suppose southern fresh allocates 11 facings to hot bull corn chips. ON average, how many bags of hot bull are on he shelf at the end of the day? C) Although SF does not want to incur the cost o holding the inventory , it does want to leave the customers with the impression that it will be stocked. Hence , SF employees continually roam the aisles of the store the adjust the presentation of the product. In particular, they shift the product around so that there is an item in each facing whenever possible . Suppose SF allocates 11 facings to hot bull corn chips, . What is the probability that at the end on the day there will be an empty facing that is , a facing without any product?

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