A drugstore uses the fixed order interval model for many of the items it stocks. The manager

Question:

A drugstore uses the fixed order interval model for many of the items it stocks. The manager wants a service level of .98. Determine tire order quantity for the following items if the order interval is 14 days and lead time is 2 days:

Fantastic news! We've Found the answer you've been seeking!

Step by Step Answer:

Related Book For book-img-for-question

Operations Management

ISBN: 978-0071091428

4th Canadian edition

Authors: William J Stevenson, Mehran Hojati

See More Books

Question Posted: Dec 17, 2015 06:04 AM

See More Questions

Schaan Healthcare Products is a distributor of medical/surgical products in Saskatchewan. Schaan has a warehouse in Saskatoon that carries thousands of items, one of which is item #345-5870,...
Federated Cooperatives Limited (FCL) is the largest wholesaler/distributor of food and hardware in western Canada. FCL uses the Inform forecasting and inventory software and the fixed order interval...
Sterling Pulp Chemicals (ERCO) in Saskatoon produces chemicals for processing pulp, such as caustic soda. In its maintenance warehouse, it keeps all the spare parts for its equipment as well as...
1. Suppose that a stoichiometric mixture of isooctane (C8H18) and air is burned in an engine and then the fuel is changed to 10% (by liquid volume) ethanol and 90% by liquid volume isooctane. If the...
What determines Ssurr for a process? To calculate Ssurr at constant pressure and temperature, we use the following equation: Ssurr = 2H/ T. Why does a minus sign appear in the equation, and why is...
Benson Manufacturing is considering ordering electronic components from three different suppliers. The suppliers may differ in terms of quality in that the proportion or percentage of defective...
You invest $$17,000$ in a mutual fund recommended by a fellow Dallas Mavericks sports fan. The fund is known to have \highs and lows," but your friend virtually guarantees you will beat the market...
Boehm Incorporated is expected to pay a $1.50 per share dividend at the end of this year (i.e., D1 = $1.50). The dividend is expected to grow at a constant rate of 7% a year. The required rate of...
Below are several amounts reported at the end of the year. Currency located at the company Supplies Short-term investments that mature within three months Accounts receivable Balance in savings...
BUSINESS CASE (100 points) Julia has recently opened a dry fruits wholesale company dedicated to the sale of peanuts, almonds and pistachios. The company's name is "The Nuthouse". THE NUTHOUSE Since...
A school bus depot operates 250 days a year. Daily demand for diesel fuel at the depot is Normal with an average of 250 litres and a standard deviation of 14 litres. Holding cost for the fuel is $.30...
A manager must setup inventory ordering procedures for two new production items, P34 and P35. P34 can be ordered at any time, but P35 can be ordered only once every four weeks. The company operates...
People volunteer for a variety of reasons. Visit the following website and choose a few of the organizations that interest you. List some of the reasons you might volunteer with each of the selected...
A company is commissioned to build an airport, starting at January, 1 year 01. The building is finished three years later (December, 31 year 03). The contract price was originally agreed to be 200...
which item must be separately stated on form 1120S? A. advertising revenue B. gross ticket sales C. cost of goods sold D. investment interest
Consider a market with a risk-free security and a risky asset. Assume that investor is not a price-taker so that her trading moves the expected return of a risky security P as following: E ( rP )...
Calculate the net pay for the following employees using PDOC Employee 1 1 Salary 5 2 0 0 5 2 0 0 monthly Bonus 5 0 0 5 0 0 Car Allowance 3 0 0 ( 3 0 0 ( insurable , , taxable, cash benefit ) ) NCTB...
24/ Prepare Balance Sheet as at 31st March, 2023 from the following information of Ford Ltd. as required under Schedule III of the Companies Act, 2013: Term Loan (Secured) Sundry Creditors Advances...
On 1 May 2023, a company which prepares financial statements to 30 April each year issues 750,000 of 3% loan stock at a discount of 5%. Issue costs are 13,175. Interest is payable on 30 April each...
The senior management at Davis Watercraft would like to determine if it is possible to improve firm profitability by changing their existing product mix. Currently, the product mix is determined by...
At Samanthas Super Store the customer service area processes customer returns, answers customer questions and provides information, addresses customer complaints, and sells gift certificates. The...
At Samanthas Super Store the customer service area processes customer returns, answers customer questions and provides information, addresses customer complaints, and sells gift certificates. The...
Metropolitan General Hospital is a city-owned and operated public hospital. Its emergency room is the largest and most prominent in the city. Approximately 70% of emergency cases in the city come or...
Milligan's Backyard Storage Kits, a mail order company, sells a variety of backyard storage unit kits and landscaping decorations to its customers. Although the company makes a profit, David...
1. If you think about then Guest Services Essentials class, what do you believe to be the biggest change in your customer service practice? 2. Name and describe two customer service techniques to...
Packaging Waste & Recycling UK, 2013('000 tonnes) 2,260 Total Packaging Waste Total Recycled 4,000 3,868 3,459 3,000 2,339 2,000 1,639 1,029 1,000 806 714 462 436 23 0 0 Metal Glass Wood Paper...

A drugstore uses the fixed order interval model for many of the items it stocks. The manager

Question:

Average Daily Demand " KO Daily Standard Deviation Overt on an K033 K144 700 60 5 420 375 100 50 2

Step by Step Answer:

Fixed Interval model SL 98 OI 14 days LT 2 ...View the full answer

Operations Management

Students also viewed these Management Leadership questions