Inventing a new soft drink -what would be the input - the conversion, and the output?
The input would be the taste/flavor of the new soft drink. When inventing something new, you need to figure out something that will give it a distinct difference over competition. After you have established what you want it to taste like, you need to make the receipe and try it to make sure you like it and can replicated it for consumers. Once the drink has been made for test tasting, having people try the drink will establish whether or not they want to purchase the drink. Once the entire drink has been through the processes of test tasting, if there is good feedback it's time to put the product on the the self as the output.
Answer:
Average daily demand (d) = 15
Lead time (L) = 3 days
Value of Z = 2
Standard deviation of demand during lead time = 5
Reorder point = d × L + (Z × standard deviation of demand during lead time)
= 15 × 3 + (2 × 5)
= 45 + 10
= 55
