The Belwood Bread Company uses an average of 4,000 kilos of flour daily, with a standard deviation of 500 kilos per day. The average lead time to get a shipment of flour is 9 days with a standard deviation of 2 days. The owner of the bakery wants to maintain a service level of 95%.

z-value Probability
1.63 .9485
1.64 .9500
1.65 .9505
1.66 .9515
1.67 .9615
Which one of the following is true about the reorder point for flour?

The Belwood Bread Company uses an average of 4,000 kilos of flour daily, with a standard deviation of 500 kilos per day is explained below in detail.

Explanation:

In my practice, it doesn't save capital, but it's still deserving it because it's wholesome and better than reserve purchased at the same amount.

For me, 1kg of all-purpose powder yields 1.6kg of bread (as two cubes). Each 13x4x4" (Pullman) loaf measures about 800 grams after freezing and yields between 22-30 slices related to its width. The value per loaf is under $1.00 and incorporates all components, charge, and electricity for mixing, baking, slicing.

I've created a few hundred loaves based on modifications of this formula:

% grams cost calories sodium protein fat sugar

all-purpose powder 100 500 0.417 1833 0 50 17 0

instant yeast 0.8 4 0.067 16 0 0 0 3

non-fat dry milk 4 20 0.203 70 0 7 10 109

sugar 4 20 0.019 75 0 0 20 0

canola oil 10 50 0.072 429 50 0 0

salt 2 10 0.006 0 0 0 0 3933

water 56 280 0.000 0 0 0 0 0

dough total 176.8 884 $0.783 2422 50 57 47 4045