The Daily Sales of a Peanut Butter at Power's Grocery

question 151

Short Answer

The daily sales of a peanut butter at Power's Grocery are normally distributed, with a mean of 12 jars and a standard deviation of 4. The manager checks the inventories on shelves and places an order every three days. Delivery lead time is two days.
-In a noninstantaneous receipt model, daily demand is 55 units and daily production is 120 units, C_o=$70 and C_c=$4 per unit/year. The production facility operates 300 days per year. What is the maximum inventory level?

---

Definitions:

Bankruptcy Abuse

Activities that exploit the bankruptcy system in a deceitful or fraudulent manner to gain undue advantage or evade debt obligations.

Debtor's Income

The amount of money received by an individual or entity who owes a debt to another party.

Bankruptcy Trustee

A person appointed by the court to manage the debtor’s funds in a bankruptcy proceeding.

Debtor's Estate

The total sum of a debtor's legal rights, obligations, and owned property that might be used to repay debts.