A pharmacist is trying to determine the inventory order and stock levels for a particular drug....

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A pharmacist is trying to determine the inventory order and stock levels for a particular drug. The following information is available about the drug. Demand (D) 85 tablets/week Working weeks per year 52 weeks Unit holding cost per year (H) $6 Order cost (S) $44/order Standard deviation of weekly demand (d) 15 tablets Lead time (L) 2 weeks Desired cycle service level 95%. a) If the pharmacist uses the continuous review (Q) system to control the inventory of the drug, what would be the order quantity and reorder point? b) If the pharmacist uses the periodic review (P) system to control the inventory of the drug, what would be the review interval and target inventory level? (Hint: Use the EOQ model to derive the review interval P) A pharmacist is trying to determine the inventory order and stock levels for a particular drug. The following information is available about the drug. Demand (D) 85 tablets/week Working weeks per year 52 weeks Unit holding cost per year (H) $6 Order cost (S) $44/order Standard deviation of weekly demand (d) 15 tablets Lead time (L) 2 weeks Desired cycle service level 95%. a) If the pharmacist uses the continuous review (Q) system to control the inventory of the drug, what would be the order quantity and reorder point? b) If the pharmacist uses the periodic review (P) system to control the inventory of the drug, what would be the review interval and target inventory level? (Hint: Use the EOQ model to derive the review interval P)

Answer rating: 100% (QA)

To calculate the order quantity and reorder point for the continuous review Q system and the review ... View the full answer