A Recently-Divorced Father Checks the Level of Boil and Serve

question 73

Short Answer

A recently-divorced father checks the level of Boil and Serve macaroni and cheese in his pantry the last day of every month. He uses an average of 20 boxes per month (his reorder lead time)with a standard deviation of 5 boxes and wants to avoid the embarrassment and deprivation of a stockout 99% of the time. Lead time is essentially zero since he can pick up a box on the way home from work each day. What should his restocking level be?

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Definitions:

Strategy

A plan of action or policy designed to achieve a major or overall goal, especially in business or politics.

Second Job

Employment taken in addition to one's primary job to supplement income, often requiring balancing multiple work schedules.

Full Time

Refers to employment where individuals work a complete or standard number of hours considered typical for the job, usually around 35 to 40 hours per week.

Business Profits

The monetary surplus achieved by a company after all operating expenses, taxes, and costs have been subtracted from total revenue.