Demand for walnut fudge ice cream at the Sweet Cream Dairy canbe approximated by a normal distribution with a mean of 17 gallonsper week and a standard deviation of 3.2 gallons per week. The newmanager desires a service level of 90 percent. Lead time is twodays, and the dairy is open seven days a week. (Hint: Work in termsof weeks.)

a-1. If an ROP model is used, what ROP would be consistent withthe desired service level? (Do not round intermediate calculations.Round your final answer to 2 decimal places.)

ROP ______ gallons

a-2. How many days of supply are on hand at the ROP, assumingaverage demand? (Do not round intermediate calculations. Round yourfinal answer to 2 decimal places.)

Days _______

b-1. If a fixed-interval model is used instead of an ROP model,what order size would be needed for the 90 percent service levelwith an order interval of 7 days and a supply of 8 gallons on handat the order time? (Do not round intermediate calculations. Roundyour final answer to the nearest whole number.)

Order size _______ gallons

b-2. What is the probability of experiencing a stockout beforethis order arrives? (Do not round intermediate calculations. Roundyour final answer to the nearest whole percent. Omit the "%" signin your response.)

Probability _________ %

c. Suppose the manager is using the ROP model described in parta. One day after placing an order with the supplier, the managerreceives a call from the supplier that the order will be delayedbecause of problems at the supplier’s plant. The supplier promisesto have the order there in two days. After hanging up, the managerchecks the supply of walnut fudge ice cream and finds that 2gallons have been sold since the order was placed. Assuming thesupplier’s promise is valid, what is the probability that the dairywill run out of this flavor before the shipment arrives? (Do notround intermediate calculations. Round your final answer to thenearest whole percent. Omit the "%" sign in your response.)

Risk probability _________ %