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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 14
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 14 days, and lead time is 4 days. Average demand for one item is 79 units per day, and the standard deviation of demand is 7 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 | 44 |
2 | 12 |
3 | 109 |
Click here for the Excel Data File
Determine the order quantities for cycles 1, 2, and 3: (Round your answers to the nearest whole number.)
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