Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

A drugstore uses fixed-order cycles for many of the items it stocks. The manager wants a service level of .98. The order interval is 12

image text in transcribed
A drugstore uses fixed-order cycles for many of the items it stocks. The manager wants a service level of .98. The order interval is 12 days, and lead time is 2 days. Average demand for one item is 68 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 1 2 3 On Hand 39 10 98 Determine the order quantities for cycles 1, 2 and 3 (Round your answers to the nearest whole number) Cyclo Units 1 2 3

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Financial Markets And Institutions

Authors: Frederic S. Mishkin, Stanley Eakins

6th Edition

0321374215, 9780321374219

More Books

Students also viewed these Finance questions

Question

Understand the reasons for engaging consultants

Answered: 1 week ago