Drugstore

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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 13 days, and lead time is 3 days. Average demand for one item is 66 units per day, and the standard deviation of demand is 12 units per day. Given the on-hand inventory at the reorder time for each order cycle shown in the following table.

Use Table.


 

CycleOn Hand
138      
213      
3110      


 

Determine the order quantities for cycles 1, 2, and 3: (Round your answers to the nearest whole number)


 

Cycle          Units
1[removed]  
2[removed]  
3[removed]  

    • 11 years ago
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