Charlie\'s Pizza orders all of its pepperoni, olives, anchovies, and mozzarella
ID: 462021 • Letter: C
Question
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 200 pounds of pepperoni each week, with a standard deviation of 22 pounds. Charlie's prides itself on offering only the best-quality ingredients and a high level of service, so it wants to ensure a 95 percent probability of not stocking out on pepperoni.
Assume that the sales representative just walked in the door and there are currently 480 pounds of pepperoni in the walk-in cooler. How many pounds of pepperoni would you order? (Round your answer to the nearest whole number.)
Amount of pepperoni ordered:_______ pounds
Explanation / Answer
Answer:
The weekly requirement is 200 pounds plus 22 that is 222 pounds on a higher side;
The available stock of 480 pounds will suffice the demand of 2 weeks and a day atleast (480 - 222 x 2) and if the demand is less than it will suffice the demand for 2 weeks and 5 days approx (480 - 178x2). The sales person arrives once in four weeks and order takes 3 weeks to arrive, therefore we must order goods that can suffice atleast 4 weeks demand on highe side that is 222 x 4 = 888 pounds.