19 University Drug Pharmaceuticals orders its antibiotics every two weeks (14 days) when a sales- person visits

Question:

19 University Drug Pharmaceuticals orders its antibiotics every two weeks (14 days) when a sales- person visits from one of the pharmaceutical companies. Tetracycline is one of its most pro- scribed antibiotics, with average daily demand of 2,000 capsules. The standard deviation of daily demand was derived from examining prescriptions filled over the past three months and was found to be 800 capsules. It takes five days for the order to arrive. University Drug would like to satisfy 99 percent of the prescriptions. The salesperson just arrived, and there are cur- rently 25,000 capsules in stock. How many capsules should be ordered?

Fantastic news! We've Found the answer you've been seeking!

Step by Step Answer:

Related Book For  book-img-for-question

Operations Management For Competitive Advantage

ISBN: 1572

11th Edition

Authors: Richard B. Chase, F. Robert Jacobs

Question Posted: