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.
- What is the cycle service level that DoorRed achieves with its policy?
- What is the fill rate that DoorRed achieves with its policy?
- What change in fill rate would DoorRed achieve if it increased its re-order point (ROP) from 750 to 800?
- 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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