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A drugstore uses fixed-order cycles for many of the items it stocks. The manager wants a service level of .99. The order interval is 9
A drugstore uses fixed-order cycles for many of the items it stocks. The manager wants a service level of .99. The order interval is 9 days, and lead time is 4 days. Average demand for one item is 67 units per day, and the standard deviation of demand is 5 units per day. Given the on-hand inventory at the reorder time for each order cycle shown in the following table. Use Table.
Cycle | On Hand |
1 | 42 |
2 | 7 |
3 | 97 |
Determine the order quantities for cycles 1, 2, and 3: (Round your answers to the nearest whole number)
Cycle | Units |
1 | |
2 | |
3 | |
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