A drugstore uses fixed-order cycles for many of the items, Operation Management

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A drugstore uses fixed-order cycles for many of the items

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 15 days, and lead time is 2 days. Average demand for one item is 66 units per day, and the standard deviation of demand is 5 units per day. Given the on-hand inventory at the reorder time for each order cycle shown in the following table. Use Table. Cycle On Hand 1 41 2 6 3 107 Determine the order quantities for cycles 1, 2, and 3.

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Operation Management: A drugstore uses fixed-order cycles for many of the items

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Operation Management: A drugstore uses fixed-order cycles for many of the items

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