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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

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