KVS Pharmacy fills prescriptions for a popular childrens antibiotic, amoxicillin. The daily demand for amoxicillin is normally

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KVS Pharmacy fills prescriptions for a popular children’s antibiotic, amoxicillin. The daily demand for amoxicillin is normally distributed with a mean of 200 grams and a standard deviation of 80 grams. The vendor for the pharmaceutical firm that supplies the drug calls the drugstore’s pharmacist every 30 days and checks the inventory of amoxicillin. During a call the druggist indicated the store had 60 grams of the antibiotic in stock. The lead time to receive an order is four days. Determine the order size that will enable the drugstore to maintain a 99% service level.

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Operations Management Creating Value Along the Supply Chain

ISBN: 978-1118301173

1st Canadian Edition

Authors: Roberta S. Russell, Bernard W. Taylor, Ignacio Castillo, Navneet Vidyarthi

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