A factory orders supplies every 8 days. The lead time for deliveries is 3 days. Demand for butter averages 20 pounds per day with astandard deviation of 2.3 pounds. The holding cost for butter is $0.37 per pound per day. The factory wants to achieve an in-stockprobability rate of 99.87% for butter.On average, how many pounds of butter will the factory have on order?

Order quantity is the number of unit of goods that is ordered by a company or an individual for the…

Answered: A factory orders supplies every 8 days.…

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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