Jimmy's Delicatessen sells large tins of Tom Tucker's Toffee. The deli uses a periodic review system, checking inventory

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Jimmy S Delicatessen Sells Large Tins Of Tom Tucker S Toffee The Deli Uses A Periodic Review System Checking Inventory 1 (160.65 KiB) Viewed 75 times

Jimmy's Delicatessen sells large tins of Tom Tucker's Toffee. The deli uses a periodic review system, checking inventory levels every 8 days, at which time an order is placed for more tins. Order lead time is 5 days. Average daily demand is 9 tins, so average demand during the reorder period and order lead time (13 days) is 117 tins. The standard deviation of demand during this same 13-day period is 17 tins. z value 1.28 1.65 2.33 3.08 Resulting service level (%) 90 95 99 99.9 a. Calculate the restocking level. Assume that the desired service level is 99%. The restocking level istins. (Enter your response rounded up to the next whole number.) b. Suppose that the standard deviation of demand during the same 13-day period drops to 4 tins. What happens to the restocking level? The new restocking level istins. (Enter your response rounded up to the next whole number) What happens to the restocking level when the the standard deviation of demand drops? OA. The restocking level does not change. This is true because the restocking level is determined only by the average demand during the reorder period and lead time. OB. The restocking level drops slightly because the standard deviation of demand decreased. This is true because the restocking level is determined by the average demand during the reorder period and lead time minus z times the standard deviation of demand during the reorder period and lead time. OC. The restocking level picks up significantly because the standard deviation of demand decreased. This is true because the restocking level is determined by the average demand during the reorder period and lead time plus z times the standard deviation of demand during the reorder period and lead time. OD. The restocking level drops significantly because the standard deviation of demand decreased. This is true because the restocking level is determined by the average demand during the reorder period and lead time plus z times the standard deviation of demand during the reorder period and lead time. C