Wendy's Cupcakes Stocks a High Volume Item That Has a Normally

question 26

Essay

Wendy's Cupcakes stocks a high volume item that has a normally distributed demand during the reorder period. The average daily demand is 80 units, the lead time is 5 days, and the standard deviation of demand during the reorder period is 6.
a. How much safety stock provides a 99% service level to Wendy's?
b. What should the reorder point be?

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Definitions:

Humus

Substances in the soil originating from decomposed plant materials and leaves, broken down by microorganisms.

Porous

Characterized by the presence of tiny holes or spaces through which liquids or gases can pass, making the material permeable.

Precipitation

Any form of water, liquid or solid, that falls from the atmosphere and reaches the ground, including rain, snow, sleet, and hail.

Erosion

Erosion is the natural process by which soil, rock, and other surface material are worn away and transported by natural forces, such as water or wind.