Question: A large hospital uses a certain intravenous solution that it maintains in inventory. Assume the - hospital uses reorder point method to control the inventory
A large hospital uses a certain intravenous solution that it maintains in inventory. Assume the - hospital uses reorder point method to control the inventory of this item. Assume the hospital operates 52 weeks per year. Pertinent data about this item are as follows: Forecast of demand 3=1,000 units per week Forecast error 3, std. dev. =50 units per week Lead time =4 weeks Carrying cost =25% per year Purchase price, delivered =$52 per unit Replenishment order cost =$20 per order Stockout cost =$10 per unit In-stock Probability during the lead time =90% N Normally distributed Due to possible rounding effect, please pick the closest number in the following options. What is the reorder point? 4168 4128 4256 4000
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