Question: 9) Identify the appropriate inventory model to obtain the optimal lot size for the given problem description: A drugstore places an order every fourteen days
9) Identify the appropriate inventory model to obtain the optimal lot size for the given problem description:
A drugstore places an order every fourteen days for many of the items it stocks. The manager of the drugstore wants a service level of 98%. The replenishment lead-time is 2 days. Average demand for one specific item is normally distributed with a mean of 40 units per day, and the standard deviation of demand is 3 units per day.
Select one:
a. None of the listed
b. Fixed Order Interval
c. Single Period
d. ROP
e. EOQ
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