Question: Do not use excel( Please not on excel) By hand. show all calculation and explain them well Thanks . DoorRed Pharmacy replenishes one of its

Do not use excel( Please not on excel)

By hand.

show all calculation

and explain them well

Thanks

. DoorRed Pharmacy replenishes one of its best-selling drugs using a continuous review policy. Daily demand for the drug is normally distributed, with a mean of 300 and a standard deviation of 100. The wholesaler can process a replenish- ment request in two days. The current replenishment policy is to order 1,500 units when there are 750 units on hand.

  1. What is the cycle service level that DoorRed achieves with its policy?
  2. What is the fill rate that DoorRed achieves with its policy?
  3. What change in fill rate would DoorRed achieve if it increased its re-order point (ROP) from 750 to 800?
  4. DoorRed wants to adjust its ROP from 750 to achieve a fill rate of 99.9 percent. What ROP should it use?

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