Determine the optimal order size, Applied Statistics

The Truly Canadian Restaurant stocks a private red table wine that it purchases from a local winery in the Niagara Falls region. The daily demand for the wine at the restaurant is normally distributed with a mean of 18 bottles and a standard deviation of 4 bottles. The winery sends a representative to check the restaurant's wine cellar every 30 days, and during a recent visit there were 25 bottles in stock. The lead time to receive an order is two days. Can you help the restaurant manager to determine the optimal order size that will enable him to limit the  probability of a stockout to 5%?

Posted Date: 2/14/2013 7:27:01 AM | Location : United States







Related Discussions:- Determine the optimal order size, Assignment Help, Ask Question on Determine the optimal order size, Get Answer, Expert's Help, Determine the optimal order size Discussions

Write discussion on Determine the optimal order size
Your posts are moderated
Related Questions
The file Midterm Data.xls has a tab labeled "Many vs. S&P" which presents historical price data for several assets, a volatility condition (VIDX = 1 if the NYSE volatility is grea

BCBSRI was able to reduce MSD related Workers Compensation cases with lost workdays by implementing a New Ergonomic Program in March 2000 and increasing workstation evaluations. Ex

Question: (a) (i) Define the term multicollinearity. (ii) Explain why it is important to guard against multicollinearity. (b) (i) Sometimes we encounter missing values

Characteristics of Index Number  On the analysis of various definitions of index number the following may be its characteristics: 1.      Expressed in Number : Index number

what do we mean by critical region

The following are the various types of common averages used in statistical analysis given in the form of a chart. Figure 1

For the circuit shown below; Write a KCL equation for Node A, Node B, Node C and Node D. Write a KVL equation for Loop 1, Loop 2 and Loop 3.   A simple circ

What would be the cutoff score to indicate a score that is in the top 15% of the scores on a test with a mean of 100 and a standard deviation of 15? This question has multiple p

The 4 assumptions of regression: 1.       Variables are normally distributed 2.       Linear relationship between the independent and dependent variables 3.       Homosced

Show that when h = h* for the histogram, the contribution to AMISE of the IV and ISB terms is asymptotically in the ratio 2:1. Compare the sensitivity of the AMISE(ch) in Equa