Charlie's Pizza orders all of its pepperoni, olives, anchovies, and mozzarella cheese to be shipped directly from Italy. An American distributor stops by every four weeks to take orders. Because the orders are shipped directly from Italy, they take three weeks to arrive. Charlie's Pizza uses an average of 250 pounds of pepperoni each week, with a standard deviation of 12 pounds. Charlie's prides itself on offering only the best-quality ingredients and a high level of service, so it wants to ensure a 90 percent probability of not stocking out on pepperoni.

Purchasing and Supply Chain Management
6th Edition
ISBN:9781285869681
Author:Robert M. Monczka, Robert B. Handfield, Larry C. Giunipero, James L. Patterson
Publisher:Robert M. Monczka, Robert B. Handfield, Larry C. Giunipero, James L. Patterson
Chapter16: Lean Supply Chain Management
Section: Chapter Questions
Problem 10DQ: The chapter presented various approaches for the control of inventory investment. Discuss three...
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Assume that the sales representative just walked in the door and there are currently 450 pounds of pepperoni in the walk on cooler. How many pounds of pepperoni would you order?
Charlie's Pizza orders all of its pepperoni, olives, anchovies, and mozzarella cheese to be shipped directly from Italy. An American
distributor stops by every four weeks to take orders. Because the orders are shipped directly from Italy, they take three weeks to
arrive.
Charlie's Pizza uses an average of 250 pounds of pepperoni each week, with a standard deviation of 12 pounds. Charlie's prides itself
on offering only the best-quality ingredients and a high level of service, so it wants to ensure a 90 percent probability of not stocking
out on pepperoni.
Transcribed Image Text:Charlie's Pizza orders all of its pepperoni, olives, anchovies, and mozzarella cheese to be shipped directly from Italy. An American distributor stops by every four weeks to take orders. Because the orders are shipped directly from Italy, they take three weeks to arrive. Charlie's Pizza uses an average of 250 pounds of pepperoni each week, with a standard deviation of 12 pounds. Charlie's prides itself on offering only the best-quality ingredients and a high level of service, so it wants to ensure a 90 percent probability of not stocking out on pepperoni.
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