Question
DoorRed Pharmacy replenishes one of its best-selling drugs using a continuous review policy. Daily demand for the did-Liq is normally distributed. with a mean of
DoorRed Pharmacy replenishes one of its best-selling drugs using a continuous review policy. Daily demand for the did-Liq is normally distributed. with a mean of 300 and a standard deviation of 100. The wholesaler can process a replenishment request in two days. The current replenishment policy is to order 1,500 units when there are 750 units on hand.
a. What is the cycle service level that DoorRed achieves with its policy?
b. What is the fill rate that DoorRed achieves With its policy?
c. What change in fill rate: would DoorRed achieve if it increased its reorder point. from 750 to 800?Step by Step Solution
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Step: 1
Following information is given for this replenishment policy Average Daily Demand D 300 Standard Dev...
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Statistics For Business And Economics
Authors: Paul Newbold, William Carlson, Betty Thorne
8th Edition
0132745658, 978-0132745659
