Question: please help ITSCM 306 Operations Management Chapter 20 Problem Set: Inventory Problem 3: UDI Pharmaceuticals orders its antibiotics every two weeks (14 days) when a

please help
please help ITSCM 306 Operations Management Chapter 20 Problem Set: Inventory Problem

ITSCM 306 Operations Management Chapter 20 Problem Set: Inventory Problem 3: UDI Pharmaceuticals orders its antibiotics every two weeks (14 days) when a salesperson visits from one of the Pharmaceutical companies. Tetracycline is one of its most prescribed antibiotics, with average daily demand of 2,000 capsules. The standard deviation of daily demand was derived from examining prescriptions filled over the past three months and was found to be 800 capsules. It takes five days for the order to arrive. UDI uses Fixed - Time Period Model. UDI would like to satisfy 99 percent of the prescriptions. The salesperson just arrived, and there are currently 25,000 capsules in stock. How many capsules should be ordered

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related General Management Questions!