4. Identify the appropriate inventory model to obtain the optimal lot size for the given problem…

4.

Identify the appropriate inventory model to obtain the optimal lot size for the given problem description:

A small grocery store sells fresh produce, which it obtains from a local farmer. During the strawberry season, demand for fresh strawberries can be reasonably approximated using a normal distribution with a mean of 40 quarts per day and a standard deviation of 6 quarts per day. The grocer purchases fresh strawberries daily from the local farmer for $1.5 per quart and sells them for $3.20 per quart. At the end of each business day, any remaining strawberries are sold to a producer of fresh juice for 50 cents.

Select one:

a. None of the listed

b. ROP

c. Single Period

d. Fixed Order Interval

e. EOQ