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...

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?

Jun 02, 2022

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