You manage inventory for a “Super Center” take-out deli department that is open 7 days a week. Your best seller is the fried chicken prepared in the store. You order every four days – and it takes the vendor three days to get your order to the store. Historically, you’ve never sold more than 3 cases of chicken parts per day. Applying the principles of continuous replenishment – and showing/explaining your reasoning:
Explain how (and calculate) the amount of time to be reliably replenished?
Explain how and actually calculate what the appropriate initial buffer size should be with the data that is given?