Question

A catalog retailer of kitchen items observes that during some weeks it sells 40 muffin pans, and during other weeks it sells none. A reorder takes up to three weeks. The probability of running out of pans and alienating its customers can be alleviated by maintaining _____.

Answer 1

To alleviate the probability of running out of muffin pans and alienating customers, the catalog retailer should maintain a proper inventory management system.

Step-by-step explanation:

To alleviate the probability of running out of muffin pans and alienating customers, the catalog retailer should maintain a proper inventory management system.

This system should take into account the probability distribution of weekly sales and the lead time for reordering.

By accurately forecasting demand and ensuring that there is always a buffer of muffin pans in stock, the retailer can minimize the risk of running out of inventory.