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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

179 9 0 2 0 8 0 8 4 2 2 5 3 2 1 6 666 77 88899 99999 99999 99999 99999 44 928 9 8 0 0 1 2 67 96 159 036 2 0 80 78 71 55 28 85 24 42 39 12 61 86 88 66 74 73 56 26 83 30 68 98 22 41 56 67 76 82 87 91 94 95 97 2 2 997 2 8 1 1 69 16 7778 57019 75 95 58 85 566 67 .7 .7 .8 3 2 541 2 2 1 01234 56789 01234 56789 2222 22222 33333

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