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Business, 17.09.2021 01:50 stmy1969

A manager of a local grocery store wants to anticipate the sales of Pepsi-Cola for the following month, so that she can prepare enough inventory to meet the demand. She predicts that the demand for the Pepsi-Cola will follow a normal distribution, and the average monthly demand will be 300 with standard deviation of 60. (a) How many Pepsi-Cola should be ordered to satisfy a 95% expected fill rate?
(b) What is the quantity should be ordered to achieve a 95% in-stock probability?
(c) Even though the percentages for the expected fill rate and in-stock probability are the same, the order quantities differ. In a few sentences, explain the reason behind this difference.

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