Question
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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