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large hospital uses a certain intravenous solution that it maintains in inventory. Assume the hospital uses reorder point method to control the inventory of this
large hospital uses a certain intravenous solution that it maintains in inventory. Assume the hospital uses reorder point method to control the inventory of this item. Assume the hospital operates weeks per year. Pertinent data about this item are as follows:Forecast of demanda units per weekForecast errora, std dev. units per weekLead time weeksCarrying cost per yearPurchase price, delivered $ per unitReplenishment order cost $ per orderStockout cost $ per unitInstock Probability during the lead time a Normally distributedDue to possible rounding effect, please pick the closest number in the following options.If the lead time is normally distributed with a mean of weeks and a standard deviation of weeks, what's the reorder point?
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