Assignment:
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 10 days, and lead time is 2 days. Average demand for one item is 64 units per day, and the standard deviation of demand is 10 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 45
2 6
3 101
Determine the order quantities for cycles 1, 2, and 3: (Round your answers to the nearest whole number) Cycle Units
Cycle Units
1 ?
2 ?
3 ?