Central Perk orders their organic coffee filters from a South American supplier that mails them as inexpensively (hence, as slowly) as possible. Central Perk uses 80 ilters a day with a standard deviation of 5 filters per day. It would be disastrous if they ran out of these filters, years ago customers caught them using paper towels rom the men's room and business suffered. They have set their service level at 99% n hopes of avoiding a similar situation. It takes 14 days to receive a shipment and the standard deviation of the shipping time is two days. What is their reorder point?
Central Perk orders their organic coffee filters from a South American supplier that mails them as inexpensively (hence, as slowly) as possible. Central Perk uses 80 ilters a day with a standard deviation of 5 filters per day. It would be disastrous if they ran out of these filters, years ago customers caught them using paper towels rom the men's room and business suffered. They have set their service level at 99% n hopes of avoiding a similar situation. It takes 14 days to receive a shipment and the standard deviation of the shipping time is two days. What is their reorder point?
Chapter1: An Overview Of Strategic Marketing
Section1.2: Dollar Shave Club: The Company For Men
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Transcribed Image Text:Question 8
Central Perk orders their organic coffee filters from a South American supplier that
mails them as inexpensively (hence, as slowly) as possible. Central Perk uses 80
filters a day with a standard deviation of 5 filters per day. It would be disastrous if
they ran out of these filters, years ago customers caught them using paper towels
from the men's room and business suffered. They have set their service level at 99%
in hopes of avoiding a similar situation. It takes 14 days to receive a shipment and
the standard deviation of the shipping time is two days. What is their reorder point?
A) 1120 filters
B) 1496 filters
C) 1515 filters
D) 1450 filters
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