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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 13

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 13 days, and lead time is 2 days. Average demand for one item is 65 units per day, and the standard deviation of demand is 2 units per day. Given the on-hand inventory at the reorder time for each order cycle shown in the following table.

Cycle - On Hand

1 48

2 11

3 104

Determine the order quantities for cycles 1, 2, and 3

image text in transcribed

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