Determine the order quantities for cycles

Assignment Help Operation Management

Reference no: EM132144619

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 14 days, and lead time is 3 days. Average demand for one item is 63 units per day, and the standard deviation of demand is 2 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 46 2 12 3 104 Determine the order quantities for cycles 1, 2, and 3: (Round your answers to the nearest whole number) Cycle Units 1 2 3.

Reference no: EM132144619

Questions Cloud

Network organization model and learning organization : Research a company that you believe uses a network organization model. Describe the company and explain why you think company uses a network organization model

Fascinated by the toyota production system : FOR MORE THAN 20 YEARS, leaders around the world have been fascinated by the Toyota Production System.

Describe action regulatory agency took against business : Describe an action a regulatory agency took against a business in the past 6 months. Post a link to your source. Do you agree or disagree with the action?

Organizational culture increase organizational effectiveness : In what ways can organizational culture increase organizational effectiveness?

Determine the order quantities for cycles : Determine the order quantities for cycles 1, 2, and 3:

What benefit would using optimal order quantity yield : Other than cost savings, what benefit would using the optimal order quantity yield (relative to the order size of 1,500)?

What benefit would using the optimal order quantity yield : Other than cost savings, what benefit would using the optimal order quantity yield (relative to the order size of 1,500)?

What is the resulting service level : What is the resulting service level?

Disease control and prevention : You are an administrator at the Centers for Disease Control and Prevention (CDC) in Atlanta, Georgia.

User Account

All Pages