(Answered) : 10. Demand for walnut fudge ice cream at the Sweet Cream Dairy can be approximated by a normal distribution with a mean of 21

10.

Demand for walnut fudge ice cream at the Sweet Cream Dairy can be approximated by a normal distribution with a mean of 21 gallons per week and a standard deviation of 3.5 gallons per week. The new manager desires a service level of 90 percent. Lead time is two days, and the dairy is open seven days a week. (Hint: Work in terms of weeks.) If the ROP model is used, what is the appropriate safety stock level to achieve the desired service level?

Select one:

a. 8.96 gallons

b. 2.39 gallons

c. 3.39 gallons

d. 90%

e. none of the listed

Expert Answer

Safety

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