A drugstore uses fixed-order cycles for many
by ella | Aug 20, 2025 | Business
Problem 13-31
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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 13 days, and lead time is 3 days. Average demand for one item is 70 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.
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| Use Table. |
| Cycle |
On Hand |
| 1 |
39 |
| 2 |
14 |
| 3 |
110 |
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Determine the order quantities for cycles 1, 2, and 3: (Round your answers to the nearest whole number)
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