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Problem 13-31 A drugstore uses fixed-order cycles for many of the items it stocks. The manager wants a service level of .98. The order interval
Problem 13-31
A drugstore uses fixed-order cycles for many of the items it stocks. The manager wants a service level of .98. The order interval is 13 days, and lead time is 2 days. Average demand for one item is 61 units per day, and the standard deviation of demand is 8 units per day. Given the on-hand inventory at the reorder time for each order cycle shown in the following table. |
UseTable. |
Cycle | On Hand |
1 | 39 |
2 | 8 |
3 | 101 |
Determine the order quantities for cycles 1, 2, and 3:(Round your answers to the nearest whole number) |
Cycle | Units |
1 | |
2 | |
3 | |
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