Question: Flu season appears to be particularly difficult for affected groups next year. A hospital needs to order flu vaccines to help keep rates of flu

Flu season appears to be particularly difficult for affected groups next year. A hospital needs to order flu vaccines to help keep rates of flu low to minimize risk to their at risk patient population. The hospital is projecting a normally distributed expected demand of 150,000 people who will need a flu shot with a standard deviation of 16,250. Flu shots cost $20 per dose and are sold for $35 per dose to the public. After the flu season is over, flu vaccination doses are worthless. The hospital has worked it out with the vaccine supplier to be able to order twice: once upfront and once during flu season. Shipping costs are typically $8 per dose. If the hospital orders during flu season, theyll need to pay expedited shipping costs of $16 per dose. What should the hospitals initial order be?

147,728

143,000

137,572

140,803

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