[Steps Shown] Ned’s Natural foods cells unshelled peanuts by the kilogram. Historically, Ned had observed that daily demand is normally distributed with a mean

Question:

Ned’s Natural foods cells unshelled peanuts by the kilogram. Historically, Ned had observed that daily demand is normally distributed with a mean of 80 kg and a standard deviation of 10 kg. Lead time is 7 days.

What ROP would provide a stockout risk of 10% during lead time? (type 1 service)
What is the associated expected number of units (kg) short per cycle?

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[Steps Shown] Ned’s Natural foods cells unshelled peanuts by the kilogram. Historically, Ned had observed that daily demand is normally distributed with a mean

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