Question: 1 . Using the past seven months' data a s the benchmark, measure the clinic s performance. What indicators will you use i n your

1. Using the past seven months' data as the benchmark, measure the clinics performance. What indicators will you use in your computation and why?
2. What is the main trade-off in inventory management illustrated by John and Lily?
3. How would you convince John to set an economically viable service level target for non-life-saving medical supplies?
4. Suppose the clinic implements the continuous review system. What is the Re-Order Quantity that optimizes the total cost of ownership? What is the Re-Order Point for 97.5% and 99% service levels respectively?
5. Suppose the clinic implements the continuous review system with a target service level of99%. What is the average stock? How does this continuous review system compare to the one with 97.5% service level?
6. Suppose the clinic implements the periodic review system. What is the Order quantity - Order-Up-To-Level (OUL) for 97.5% and 99% service levels respectively?
7. Suppose the clinic implements the periodic review system with a target service level of99%. What is the average stock? How does this continuous review system compare to the one with 97.5% service level?
8. What are the pros and cons of the continuous and periodic review systems? Which one would you recommend and why?
9. What could explain the action of Lily to order more stocks than usual? What are the risks associated with designing an inventory management system without engaging with the stakeholders who understand the supply and demand patterns?
10. What is the impact of the service level target on stock quantity and cost? What service level would you recommend and why?

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