Jay's Café Orders Cans of Beans Every 2 Weeks

question 26

Multiple Choice

Jay's Café orders cans of beans every 2 weeks.It typically takes the supplier 2 days to fulfill the order.Jay uses 5 cans per day on average, with a standard deviation of 2 units per day.Assume that Jay wants to have a 50% service level on the availability of beans.There are currently 5 cans of beans in Jay's inventory.How many cans should Jay order?

• A)100
• B)80
• C)85
• D)75

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Definitions:

Conditions

Stipulations or requirements specified within an agreement or contract that must be met for it to be fully effective.

Holder

An individual or entity that legally possesses a negotiable instrument, like a check or promissory note, and has the right to enforce it.

FTC

The Federal Trade Commission, a U.S. federal agency responsible for consumer protection and the prevention of anti-competitive business practices.

Negotiable Installment Notes

Debt instruments that promise repayments in a series of payments and are transferable to others.