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A pharmacist is trying to determine the inventory order and stock levels for a particular drug. The following information is available about the drug. Demand
A pharmacist is trying to determine the inventory order and stock levels for a particular drug. The following information is available about the drug.
Demand D tabletsweek
Working weeks per year weeks
Unit holding cost per year H $
Order cost S $order
Standard deviation of weekly demand d tablets
Lead time L weeks
a If the pharmacist uses the periodic review P system to control the inventory of the drug, what would be the review interval and target inventory level? Hint: Use the EOQ model to derive the review interval P
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