(5) Alpha Snacks (AS) uses a periodic review inventory policy in ordering chocol

Question

(5) Alpha Snacks (AS) uses a periodic review inventory policy in ordering
chocolate-multi-grain snack bars. The vendor visits the store every three weeks to take
orders[ lead time for shipments is three days. The daily demand of the snack bars is
normally distributed with a mean of 50 and a standard deviation of 10. The vendor is due
to visit the store to-day and AS has to prepare order for their next shipment. Currently,
there are 180 of these snack bars in stock, how many snack bars should AS order.
AS has a service policy of 99%

Explanation / Answer

Considering a week has 7 working days

3 weeks = 28

28*50= 1400

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