2. Mountain Mouse makes freeze-dried meals for hikers. One of Mountain Mouse's biggest customers is a sporting goods superstore. Every 5 days, Mountain Mouse checks the inventory level at the superstore and places an order to restock the meals. These meals are delivered by UPS in 2 days. Average demand during the reorder period and order lead time is 100 meals, and the standard deviation of demand during this same time period is about 20 meals. a. (**) Calculate the restocking level for Mountain Mouse. Assume that the superstore wants a 90% service level. What happens to the restocking level if the superstore wants a higher level of service-say, 95%? b. (*) Suppose there are 20 meals in the superstore when Mountain Mouse checks inventory levels. How many meals should be ordered, assuming a 90% service level?
2. Mountain Mouse makes freeze-dried meals for hikers. One of Mountain Mouse's biggest customers is a sporting goods superstore. Every 5 days, Mountain Mouse checks the inventory level at the superstore and places an order to restock the meals. These meals are delivered by UPS in 2 days. Average demand during the reorder period and order lead time is 100 meals, and the standard deviation of demand during this same time period is about 20 meals. a. (**) Calculate the restocking level for Mountain Mouse. Assume that the superstore wants a 90% service level. What happens to the restocking level if the superstore wants a higher level of service-say, 95%? b. (*) Suppose there are 20 meals in the superstore when Mountain Mouse checks inventory levels. How many meals should be ordered, assuming a 90% service level?
Practical Management Science
6th Edition
ISBN:9781337406659
Author:WINSTON, Wayne L.
Publisher:WINSTON, Wayne L.
Chapter2: Introduction To Spreadsheet Modeling
Section: Chapter Questions
Problem 20P: Julie James is opening a lemonade stand. She believes the fixed cost per week of running the stand...
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Question
![2. Mountain Mouse makes freeze-dried meals for hikers. One of Mountain Mouse's biggest
customers is a sporting goods superstore. Every 5 days, Mountain Mouse checks the
inventory level at the superstore and places an order to restock the meals. These meals are
delivered by UPS in 2 days. Average demand during the reorder period and order lead time
is 100 meals, and the standard deviation of demand during this same time period is about 20
meals.
a. (**) Calculate the restocking level for Mountain Mouse. Assume that the
superstore wants a 90% service level. What happens to the restocking level if
the superstore wants a higher level of service-say, 95%?
b. (*) Suppose there are 20 meals in the superstore when Mountain Mouse checks
inventory levels. How many meals should be ordered, assuming a 90% service
level?](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F054d0b4a-edca-48ba-9ebe-36c23e945d13%2F7b163a17-f8dc-4fe0-80e3-45ba670baa9a%2Fujpu2ih_processed.png&w=3840&q=75)
Transcribed Image Text:2. Mountain Mouse makes freeze-dried meals for hikers. One of Mountain Mouse's biggest
customers is a sporting goods superstore. Every 5 days, Mountain Mouse checks the
inventory level at the superstore and places an order to restock the meals. These meals are
delivered by UPS in 2 days. Average demand during the reorder period and order lead time
is 100 meals, and the standard deviation of demand during this same time period is about 20
meals.
a. (**) Calculate the restocking level for Mountain Mouse. Assume that the
superstore wants a 90% service level. What happens to the restocking level if
the superstore wants a higher level of service-say, 95%?
b. (*) Suppose there are 20 meals in the superstore when Mountain Mouse checks
inventory levels. How many meals should be ordered, assuming a 90% service
level?
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