Dana farber also uses continuous review system to manage


Dana Farber also uses continuous review system to manage another type of less frequently used lymphoma treatment drug, Belinostat. The ordering cost is $250 per order, holding cost is $150 per dose. The annual (52 weeks) forecasted demand is 15,600 doses. Millennium Pharmaceuticals, the supplier, has been very reliable in delivery. The lead time is constantly 3 weeks after an order has been placed. Dana Farber documented the standard deviation of the demand for Belinostate during the 3-week lead time is 55 doses. Dana Farber would like maintain a 95% service level. Based on the provided information, determine the optimal order quantity (EOQ) and Reorder point (ROP).

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Operation Management: Dana farber also uses continuous review system to manage
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