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Weekly demand for wheelchairs at a Walgreens warehouse is normally distributed with a mean of 6 9 8 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 continuously and that lead times for orders placed
with Medline are normally distributed with a mean of weeks and a standard deviation of
weeks
Compute the reorder point 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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