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Gentle Ben's Bar and Restaurant uses 5,000 quart bottles of an imported wine each year. The effervescent wine costs $3 per bottle and is served only in whole bottles because it loses its bubbles quickly. Ben figueres that it costs $10 each time an order is placed, and holding costs are 20 percent of the purchase price. It takes three weeks for an order to arrive. Weekly demand is 100 bottles (closed two weeks per year) with a standard deviation of 30 bottles.
Ben would like to use an inventory system that minimizes inventory cost and will provide a 95 percent service probability.
a. what is the economic quantity for Ben to order?
b. at what inventory level should he place an order?
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The McDonald’s fast-food restaurant on campus sells an average of 3,200 quarter-pound hamburgers each week. Hamburger patties are resupplied twice a week, and on average the store has 540 pounds of hamburger in stock. Assume that the hamburger pattie..
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New software has been purchased to reduce time in calculating customers accounts. Establishing raport and effective communication with team members is primary importance to make this situation successful
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