Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Daily demand of Dulcolax tablets in a drug store follows a normal distribution with an average demand of 50 strips of tablets and standard deviation

Daily demand of Dulcolax tablets in a drug store follows a normal distribution with an average demand of 50 strips of tablets and standard deviation of demand equal to 20 strips. It takes 4 days to supply the order placed by the drug store. (i.e., lead time). The store wants to maintain 95% customer service level (for 95% service level, assume the value of z = 1.64) and monitors its inventory continuously. What is the approximate re-order point level? Group of answer choices 246 256 286 276 266

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Strategic Management Creating Competitive Advantages

Authors: Gregory G. Dess, Alan Eisner, Gerry McNamara

9th Edition

1259900525, 978-1259900525

More Books

Students also viewed these General Management questions

Question

What does it mean when the explanatory variables are collinear?

Answered: 1 week ago