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Scenario 9.10 the Dolly Llama Farm Keeps an Average of 50 of 50

question 90

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Scenario 9.10
The Dolly Llama Farm keeps an average of 50 of those funny creatures on hand and each consumes a pound of grain a day, 365 days per year. Grain costs $12 for a 50 pound bag and it costs the farm $10 to make a run to the feed store to pick up an order, regardless of order size. It takes the feed store four days to acquire, mix, and bag the special blend of grains necessary to make the feed the Dolly Llama Farm prefers. Storage costs for the feed runs 15% of the unit cost as the cost of money, loss due to critters, and spoilage all add up.
-Refer to Scenario 9.10. The actual usage for grain depends on which llamas show up at feeding time, thus there is an average need for 50 pounds of grain each day with a standard deviation of five pounds. In addition, there is some variability in how long it takes the feed store to whip up a batch of llama feed. The standard deviation of the feed prep is one day. The farm is willing to tolerate a 2% chance of running out of feed before they can get some more hauled in. Which adjustment to their system would have the greatest impact on the reorder point?

Definitions:

Feelings of Inferiority

Emotional states where an individual feels lesser or not as good as others, often influencing one's self-esteem and behaviors.

Psychosocial Stages

A theory developed by Erik Erikson outlining eight stages of psychological development that individuals undergo from infancy to late adulthood.

Erikson

Refers to Erik Erikson, a psychologist known for his theory on the psychological development of humans, characterized by eight stages from infancy to adulthood.

Personality Development

The process of forming and evolving one's patterns of behavior, thoughts, and feelings that make up an individual's personality over time.