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What rop will provide a lead time service level

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Reference no: EM13927892

Regional Supermarket is open 360 days per year. Daily use of cash register tape averages 10 rolls. Usage appears normally distributed with a standard deviation of 2 rolls per day. The cost of ordering tape is $ 1, oforder-ingtapeis$1, and carrying costs are 40 cents per roll a year. Lead time is three days.
a. What is the EOQ?
b. What ROP will provide a lead time service level of 96 percent?

Reference no: EM13927892

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