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Weekly demand for wheelchairs at a Walgreens warehouse is normally distributed with a mean of 7 2 5 units per week and a standard deviation
Weekly demand for wheelchairs at a Walgreens warehouse is normally distributed with a mean of
units per week and a standard deviation of units per week. Walgreens orders the
wheelchairs from Medline at a cost of $ per unit and the holding cost is of the purchase
cost per unit per year. Walgreens would like to maintain a cycle service level for its wheelchairs.
Suppose that Walgreens reviews its inventory every weeks and that lead times for orders placed
with Medline are constant at weeks
Compute the safety stock required to meet the desired service level for Walgreens.
Rounding instructions:
Carry calculations to at least decimal places.
Round your answer to the nearest tenth of a dollar one decimal place
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