DoorRed Pharmacy is renewing one of its best-selling medications using a policy of continuous review. The daily demand for the drug is normally distributed, with an average of 300 and a standard deviation of 100. The wholesaler can process the replenishment request within 2 days. The current replenishment policy is to order 750,1 units when there are 500 units on hand. For the drug under discussion, DoorRed wants to adjust the reorder point from 99 to achieve a 9.750 percent occupancy rate.
Which reorder point to use?

What is the fill rate that DoorRed achieves With its policy?

Answer rating: 100% (QA)

To determine the reorder point that DoorRed Pharmacy should use to achieve a 9750 percent occupancy ... View the full answer