Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

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

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

No Nonsense Management A General Managers Primer

Authors: Richard S. Sloma

1st Edition

1893122603, 978-1893122604

More Books

Students also viewed these General Management questions