Question

A drugstore uses fixed-order cycles for many of the items it stocks. The manager wants a...

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 3 days. Average demand for one item is 66 units per day, and the standard deviation of demand is 2 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     46

2    14

3   103

Determine the order quantities for cycles 1, 2, and 3: (Round your answers to the nearest whole number)

Cycle Units 1

2

3

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