Chez Paul Restaurant Orders Special Styrofoam "Doggy Bags" for Its

question 11

Essay

Chez Paul Restaurant orders special Styrofoam "doggy bags" for its customers once a month,and lead time is one week.Weekly demand for doggy bags is approximately normally distributed with an average of 120 bags and a standard deviation of 25.Chez Paul wants at most a 3% chance of running out of doggy bags during the replenishment period.If he has 150 bags in stock when he places an order,how many additional bags should he order? What is the safety stock in this case?

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Definitions:

2-For-1 Stock Split

A corporate action where a company doubles its number of outstanding shares, halving the stock price, effectively giving shareholders two shares for every one they owned.

Cancellation

The act of nullifying or terminating a previously established agreement or contract.

Legal

Pertaining to laws or the practice of law; conforming to the law or based upon the law.

Binding Obligation

A legal or contractual requirement that obligates one party to perform specific actions or face legal penalties.