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Barbara Flynn is in charge of maintaining hospital supplies at General Hospital. During the past year, the mean lead time demand for bandage BX-5 was

Barbara Flynn is in charge of maintaining hospital supplies at General Hospital. During the past year, the mean lead time demand for bandage BX-5 was

70 (and was normally distributed). Furthermore, the standard deviation for BX-5 was 5. Ms. Flynn would like to maintain a 95% service level. Refer to the

standard normal table for z-values.

a) What safety stock level do you recommend for BX-5?

Safety stock = ___________ units (round your response to the nearest whole number).

b) What is the appropriate reorder point?

Reorder Point = Demand During Lead Time + Safety Stock = ____________ units (round your response to the nearest whole number).

Z Pr(Z)
0.36 65
0.5 69
0.67 75
0.84 80
1.04 85
1.28 90
1.41 92
1.56 94
1.65 95
1.75 96
2.06 98
2.33 99

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