Business, 24.05.2021 18:40 jayleengrant

Puppy Food Inc. (PFI) sells a very popular blend of dog food. The order-up-to model is adopted to manage the inventory of this kind of dog food. Demand for the dog food has a Normal distribution with a mean 400 bags per week and a standard deviation of 60 bags per week. They order the dog food from Nutritious & Delicious Co.. The delivery lead time is 4 weeks, i. e., L = 4 weeks. The effective lead time L + 1 = 5 weeks. There is no fixed ordering cost for the shipping. The company sets a 95% critical ratio for the dog food. The z value corresponding to this 95% critical ratio is 1.6449. The dog food would run out % of the time.
The order-up-to level S= -bags. (Round your answer to the nearest integer)
If at the beginning of a week, there are 1200 bags of dog food held on-hand by the store and there are 900 bags of dog food in transit. the pet store should order bags

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Puppy Food Inc. (PFI) sells a very popular blend of dog food. The order-up-to model is adopted to ma...

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