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Question 3 : A drugstore uses fixed - order cycles for many of the items it stocks. The manager wants a service level of .

Question 3:
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 14 days, and the lead time is 2 days. The average demand for one item is 40 units per day, and the standard deviation of demand is 3 units per day. The on-hand inventory at the reorder time for each order cycle is shown in the following table.
Cycle On hand
142
28
3103
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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