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Barbara Flynn is in charge of maintaining hospital supplies at General Hospital. During the pastyear, the mean lead time demand for bandageBX-5 was 65 (and
Barbara Flynn is in charge of maintaining hospital supplies at General Hospital. During the pastyear, the mean lead time demand for bandageBX-5 was 65 (and was normallydistributed). Furthermore, the standard deviation forBX-5 was 7. Ms. Flynn would like to maintain a 95% service level. Refer to the standard normal table forz-values.
a) What safety stock level do you recommend forBX-5?
Safety stock= ______ units (round your response to the nearest wholenumber).
b) What is the appropiate reorder point?
Reorder point = ___units
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