Compute the safety stock required to achieve a 98% service level
A bakery uses an average of 60 ounces of organic orange juice daily. Demand is normally distributed with a standard deviation of 15 ounces. The bakery places orders every seven days. The lead time for delivery of the juice is three days.
Answer: 97 ounces
You might also like to view...
Unsought products are consumer products that the consumer either does not know about or knows about but does not normally consider buying
Indicate whether the statement is true or false
Which of the following statements is true?
A) The Work in Process Inventory account is the focal point of process costing. B) Labor costs are accounted for differently from overhead costs in a process costing system. C) Equivalent units usually are computed for direct materials and overhead combined. D) A process cost report should be prepared only if the average costing method is used.
Correction of a material error occurring in prior periods is reported as
a. an adjustment of earnings of the current period, only. b. a retroactive restatement of prior years earnings, only. c. a retroactive restatement of prior years earnings and an adjustment to the beginning balance of retained earnings for the current period. d. an adjustment of earnings of the current and future periods. e. an adjustment of earnings of the current period, and an adjustment to the ending balance of retained earnings for the current period.
Most states have utilities commissions, or the equivalent, that regulate local and in-state telephone rates
Indicate whether the statement is true or false