How many tablets of the medication should order


Response to the following problem:

Bank Drugs wishes to determine how many tablets of a new arthritis medication it should order. Its policy is to order from the manufacturer every other week and maintain a safety stock of 120 tablets. Based on past weeks' sales, Bank estimates that it sells 800 tablets of the medication each week. The lead time for delivery of the medication is three days.

If its current inventory is 350 tablets, determine how many tablets of the medication it should order. Assume Bank is open seven days a week.

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Cost Accounting: How many tablets of the medication should order
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