A gourmet food store uses a one-week periodic review system for ...

[sc00by25]

A gourmet food store uses a one-week periodic review system for its supply of coffee beans. There is a five-day lead time for orders, and the store will allow two stockouts per year.
 a. What is the probability of a stockout associated with each replenishment decision?
  b. What is the replenishment level if demand during the review and lead-time periods is normally distributed with mean 120 pounds and standard deviation 8 pounds?
  c. How many pounds of beans should be ordered if there are 42 pounds of beans on hand?

Question 2

Assume that you have a binomial experiment with p = 0.4 and a sample size of 50 . The variance of this distribution is
 a. 20
  b. 12
  c. 3.46
   d. 2.83

[sultansheikh]

Answer to Question 1

a. 2/52 = .0385
b. M = 120 + 1.77 ( = 134.16
c. 134  40 = 94

Answer to Question 2

b

[sc00by25]

Excellent

[Liamb2179]

Thanks for the timely response, appreciate it