Problem $3$:

One of the most common antibiotics at Will Gray$$s Pharmacy has an average

daily demand of $1800$ capsules. To maintain inventory, the pharmacy reviews

stock levels and orders more antibiotics every $7$ days. When orders are placed,

the lead time is $5$ days for capsules to arrive.

Based on prescription data over the past three months, the pharmacy has

determined that the standard deviation of daily demand is $650$ capsules. The

pharmacy has a service level objective to satisfy $99$ percent of the

prescriptions from available stock.

There are currently $480$ capsules in stock and it is time to place the next order

of the antibiotic. Based on a Fixed $$ Time Period Model, how many

capsules should be ordered?

$\%$ Grade

$20\%$