1. Case Study-Dineen's Drugs
Cheryl Dineen opened her drugstore in 1957 in a small suburb of Chicago. Over the decades the store changed and not a big box, it's 5, 000 ft2 . They carry many items in addition to the pharmacy. She does have a problem with her inventory system. Currently her average inventory is 75 days and the fill rate of over the counter products is 90%. Any item out of stock will be backordered and a rain check provided to the customer. Approximately 50% of the time, the customer will not wait for an order to be filled and just buy from one of Cheryl's competitors.
Dineen's Drugs is affiliated with a major national distributor and their deliveries are made Wednesday morning based on order placed by 9:00 Tuesday morning. This distributor has close to a 100% fill rate.
Two products are particularly troublesome, they are Tylenol Caplets and Raid Rat Poison

The demand history is consistent with prior year's demand and is in the attached below. Develop the appropriate inventory system.

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Order quantity Product Price 600 with reorder Tylenol Caplets $5.99 point of 200 100 if inventory Raid Rat Poison $9.99 is <50 If forecast is >50 order forecast number for next week Tylenol Capelets Actual Actual Actual Actual Week demand Week demand Week demand Week demand 60 14 59 27 64 40 58 62 15 59 28 65 41 67 58 16 44 29 57 42 68 4 56 17 54 30 58 43 52 54 18 60 31 55 44 75 58 19 60 32 61 45 55 57 20 62 33 61 46 54 64 21 62 34 49 47 53 62 22 74 35 59 48 61 10 52 23 54 36 61 49 63 11 48 24 62 37 61 50 64 12 72 25 58 38 57 51 60 13 63 26 64 39 65 52 61 Raid Rat Poison Actual Actual Actual Actual Week demand Week demand Week demand Week demand 14 14 33 27 17 40 630 2. co