A pharmacy dispenses a generic drug at an average rate of


A pharmacy dispenses a generic drug at an average rate of 80 milligrams per day. An examination of pharmacy records suggests that daily demand is approximately normal and has a standard deviation of 10 milligrams per day, Lead time is four days and the pharmacist wants out a stock out risk that does not exceed 1 percent.

a. Determine the reorder point (ROP)

b. How much safety stock must be carried?

c. What service level would a reorder point of 310 mg prowide?

Request for Solution File

Ask an Expert for Answer!!
Operation Management: A pharmacy dispenses a generic drug at an average rate of
Reference No:- TGS02163739

Expected delivery within 24 Hours