A local service station is opened 7 days per week, every day of the year. Sale of its premium grade oil is 40 cans per day, with a standard deviation of 9.15, and each can of oil costs $15. The service station reviews its inventory every Monday when a supply sales representative arrives. Assuming the station owner wants a 99.5% service probability and the lead time for delivery is 3 days, how many cans of oil should the service station order, if there are currently 55 cans of oil on the shelf?
A local service station is opened 7 days per week, every day of the year. Sale of its premium grade oil is 40 cans per day, with a standard deviation of 9.15, and each can of oil costs $15. The service station reviews its inventory every Monday when a supply sales representative arrives. Assuming the station owner wants a 99.5% service probability and the lead time for delivery is 3 days, how many cans of oil should the service station order, if there are currently 55 cans of oil on the shelf?
MATLAB: An Introduction with Applications
6th Edition
ISBN:9781119256830
Author:Amos Gilat
Publisher:Amos Gilat
Chapter1: Starting With Matlab
Section: Chapter Questions
Problem 1P
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![A local service station is opened 7 days per week, every day of the year. Sale of its
premium grade oil is 40 cans per day, with a standard deviation of 9.15, and each can of
oil costs $15. The service station reviews its inventory every Monday when a supply
sales representative arrives. Assuming the station owner wants a 99.5% service
probability and the lead time for delivery is 3 days, how many cans of oil should the
service station order, if there are currently 55 cans of oil on the shelf?](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F26f2fcce-ccf2-4d9f-a53c-2d25d1dd9acb%2Fdc60a47a-97de-4eaf-89c1-2f55dc4c1378%2Fxynw1o_processed.png&w=3840&q=75)
Transcribed Image Text:A local service station is opened 7 days per week, every day of the year. Sale of its
premium grade oil is 40 cans per day, with a standard deviation of 9.15, and each can of
oil costs $15. The service station reviews its inventory every Monday when a supply
sales representative arrives. Assuming the station owner wants a 99.5% service
probability and the lead time for delivery is 3 days, how many cans of oil should the
service station order, if there are currently 55 cans of oil on the shelf?
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