Suppose Ollah decides to use a periodic review system to manage the free-range dog biscuits, with…

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Suppose Ollah decides to use a periodic review system to manage the free-range dog biscuits, with the vendor checking inventory levels every week. Under this scenario, what would the restocking level be, assuming the same demand and lead time characteristics listed in Problem  and the same 95% percent service level?  (Note that because the standard deviation of weekly demand is 16, basic statistics tells us the standard deviation of demand over three weeks will be

Problem:

Average weekly demand for free-range dog biscuits is 80 bags per week, with a standard deviation of 16 bags. Olla uses a continuous inventory review system to manage inventory of the biscuits.  Olla wants to set the reorder point high enough that there is only a 5% percent chance of running out before the next order comes in. Assuming the lead time is a constant 2 weeks,

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