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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)78 tablets/week
Working weeks per year 52 weeks
Unit holding cost per year (H) $9
Order cost (S) $108/order
Standard deviation of weekly demand (d)15 tablets
Lead time (L)3 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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