operation management
assume that the annual demand for tacos is 15,000 units. The daily demand is 50 units with a standard deviation of 5 units. The cost to place order is $3,000, and the time from ordering to receipt is two days. The annual inventory holding cost is $0.50 per unit.
Find the reorder point necessary to provide a 98 percent service probability (i.e., probability of a stock out).
if manager wants to reduce the safety stock of the nacho chips by 50%, what will the new service probability be?
