Question

Charlie's Pizza orders all of its pepperoni, olives, anchovies, and mozzarella cheese to be shipped directly from Italy. An American distributor stops by every five weeks to take orders. Because the orders are shipped directly from Italy, they take four weeks to arrive.
Charlie's Pizza uses an average of 130 pounds of pepperoni each week, with a standard deviation of 16 pounds. Charlie's prides itself on offering only the best-quality ingredients and a high level of service, so it wants to ensure a 98 percent probability of not stocking out on pepperoni.


Assume that the sales representative just walked in the door and there are currently 460 pounds of pepperoni in the walk-in cooler. How many pounds of pepperoni would you order? (Round your answer to the nearest whole number.)



Amount of pepperoni's ordered pounds

Answer 1

Answer:

957 pounds of pepperoni

Explanation:

In this problem, orders (T) are being taken every 5 weeks while the delivery (L) is approximately 4 weeks. Given a probability of 98 %, we can estimate that the area [F(z)] under the ' z' left side of the normal distribution curve is 0.98. Therefore,

0.98 - 0.50 = 0.48, using the standard normal table, for an area of 0.48, the value is 2.055. Thus, the pounds pepperoni (Q) that will be ordered:

Q = 130(5+4) + 2.055(120) - 460 = 1170 + 246.6 - 460 = 956.6

Approximately 957 pounds of pepperoni.