Answered step by step
Verified Expert Solution
Question
1 Approved Answer
A pharmacy dispenses a generic drug at an average rate of 40 milligrams/day. An examination of pharmacy records suggest that the daily demand is approximately
A pharmacy dispenses a generic drug at an average rate of 40 milligrams/day. An examination of pharmacy records suggest that the daily demand is approximately normal and has a standard deviation of 4 milligrams/day. Lead time is 4 days and pharmacist wants a stock out risk that does not exceed 2%. (15 points). (a) Determine the Reorder point. (b) How much safety stock should be carried? (c) What service level would a reorder point of 180 mg provide
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started