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Question 3 (20 marks As the epidemie gradually dies down, a dispensary observes that the counter sales of N-95 face masks has become steady. The
Question 3 (20 marks As the epidemie gradually dies down, a dispensary observes that the counter sales of N-95 face masks has become steady. The dispessary estimates that the counter sales of N-95 face masks will be 12000 boxes of 10 pieces per year in the next few years. In order not to lose business at counter the dispensary is going to keep a reasonable stock of N.95 face masks. According to its accounting records, the al carrying cost of N-95 face masks is 10% of the unit item cost where the N. 95 face masks costs $200 for a box of 10 pieces, while the average total cost of ordering from suppliers is $850 for preparing and handling a procurement orders Advise the dispensary (a) The economic order quantity (EOC) of the N.95 face masks @ 10 pieces per box (b) The total cost of carrying the consequential level of stock to meet the counter sales demands. Besides, the retail demand of Panadol 20 pieces.pack follows a normal distribution with mean annual sales of 750 packs with a standard deviation of 120 packs. The dispensary intends to maintain a service level of counter sales of Panadol-20- pieces-pack at 98%. then further advise the dispensay: (c) The reorder point of Panadol-20-pieces-pack The safety stock of Panadol-20.pieces-pack {Round up to the nearest integer where reasonable and appropriate
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