Discuss the below:
Q: A pharmacy dispenses a generic drug at an average rate of 50 milligrams per day. An examination of pharmacy records suggests that daily demand is approximately normal and has a standard deviation of 5 milligrams per day. Lead time is four days, and the pharmacist wants a stock-out risk that does not exceed 1 percent.
a. Determine the re-order point (ROP)
b. How much safety stock should be carried?
c. What service level would a re-order point of 215 mg provide?