A drugstore uses fixed-order cycles for many of the items it stocks.
A drugstore uses fixed-order cycles for many of the items it stocks.
The manager wants a service level of .98. The order interval is 10 days, and lead time is 3 days. Average demand for one item is 65 units per day, and the standard deviation of demand is 11 units per day. Given the on-hand inventory at the reorder time for each order cycle shown in the following table.
Use Table.
Cycle On Hand
1 42
2 12
3 110
Determine the order quantities for cycles 1, 2, and 3: (Round your answers to the nearest whole number)
Cycle Units
1 ____
2 ____
3 ____