A corner drug store stocks Betadine, an antiseptic, available over the counter. The average demand for the
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A corner drug store stocks Betadine, an antiseptic, available over the counter. The average demand for the antiseptic is 20 tubes per day with a standard deviation of three tubes. A local representative of Betadine’s supplier visits the store once in every 60 days, checks the stock, and makes orders. During a particular visit the representative notices that there were nine tubes on the shelf. The lead time to receive an order is a week. If the store aims to maintain a 99% service level, what is the optimal order size that the representative should place to the drug company?
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