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ne of the SKUs kept at a hospital has the following characteristics. The hospital uses a continuous review system and operates 5 2 5 2
ne of the SKUs kept at a hospital has the following characteristics. The hospital uses a continuous review system and operates weeks per year.
followsDemand D comma unitsyear
followsOrdering costS$order
followsHolding costH$unityear
followsLead timeLweeks
followsCycleservice level
followsDemand is normally distributed, with a standard deviation of weekly demand of units.
The zvalues for different service levels are given below:
Cycleservice level
zvalue
a The item's economic order quantity is enter your response here units. Enter your response rounded to the nearest whole number.
b The average time between orders is enter your response here weeks. Enter your response rounded to two decimal places.
c To provide a percent cycleservice level, the reorder point for this item is enter your response here units. Enter your response rounded to the nearest whole number.
d For these policies, the annual cost of placing ordersordering costs is $enter your response here enter your response rounded to two decimal places
eCurrently the onhand inventory is units with no scheduled receipts and no backorders. Should the hospital place another order now?
A
No
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