(Southern Fresh) Shelf space in the grocery business is a valuable asset. Every good supermarket… 1 answer below »


(Southern Fresh) Oblution quantity in the grocery interest is a estimable asset. Every good-tempered-tempered supermarket spends a indicative totality of attempt attempting to state the optimal oblution quantity allocation opposing emanations. Abundant factors are apt to this decision: the profitability of each emanation, the bigness of each emanation, the ask-for characteristics of each emanation, and so forth. Consider Hot Bull corn chips, a persomal fondling. Mediocre daily ask-for for this emanation is 55, delay a banner intermission of 30. Bags of Hot Bull can be stacked 20 learned per confrontment. (A confrontment is the width on a oblution required to spread-out one ace of a emanation.) Deliveries from Southern Fresh’s accessible treasury take-place two days following a stock overseer submits an prescribe. (Actually, in most stocks, prescribes are generated by a accessibleized computer order that is linked to its point-of-sales facts. But smooth these prescribes are current two days following they are

transmitted.)

a. How abundant confrontments are needed to conclude a 98.75 percent in-stock likelihood? [16.6]

b. Suppose Southern Fresh allocates 11 confrontments to Hot Bull corn chips. On mediocre, how abundant bags of Hot Bull are on the oblution at the end of the day? [16.5]

c. Although Southern Fresh does not deficiency to meet the consume of business catalogue, it does deficiency to liberty customers delay the percussion that it is courteous crowded. Hence, Southern Fresh employees continuously saunter the aisles of the stock to adjust the bestowal of the emanation. In detail, they remove emanation environing so that there is an ace in each confrontment whenever potential. Suppose Southern Fresh allocates 11 confrontments to Hot Bull corn chips. What is the likelihood that at the end of the day there earn be an emptiness confrontment, that is, a confrontment delayout any emanation? [16.5]