Question: Hello, Pease help me with this. Step by step answer if possible. Thank you so much. FIXED-TIME PERIOD MODEL 1. A drug store orders its

Hello, Pease help me with this. Step by step answer if possible. Thank you so much.
FIXED-TIME PERIOD MODEL 1. A drug store orders its antibiotics every two weeks when a salesperson visits from one of the pharmaceutical companies. Amoxycillin is one of its most prescribed antibiotics, with an average daily demand of 1,500 capsules. The standard deviation of daily demand was derived by examining prescriptions filled over the last three months and was found to be 500 capsules. It takes nine days for the order to arrive. The drug store manager has set a service level of 99 per cent. The salesperson has just arrived, and there are currently 25,000 capsules in stock. a) How much additional stock must be carried to minimize the risk of stockout? b) How many capsules of Amoxycillin should be ordered if lot size per order is 100 capsulesStep by Step Solution
There are 3 Steps involved in it
1 Expert Approved Answer
Step: 1 Unlock
Question Has Been Solved by an Expert!
Get step-by-step solutions from verified subject matter experts
Step: 2 Unlock
Step: 3 Unlock
