DoorRed Pharmacy replenishes one of its best-selling drugs using a continuous review policy. Daily demand for the
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Question:
DoorRed Pharmacy replenishes one of its best-selling drugs using a continuous review policy. Daily demand for the did-Liq is normally distributed. with a mean of 300 and a standard deviation of 100. The wholesaler can process a replenishment request in two days. The current replenishment policy is to order 1,500 units when there are 750 units on hand.
a. What is the cycle service level that DoorRed achieves with its policy?
b. What is the fill rate that DoorRed achieves With its policy?
c. What change in fill rate: would DoorRed achieve if it increased its reorder point. from 750 to 800?
Related Book For
Statistics for Business and Economics
ISBN: 978-0132930192
8th edition
Authors: Paul Newbold, William Carlson, Betty Thorne
Posted Date: