Determine the order quantities for cycles

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A drugstore uses fixed-order cycles for many of the items it stocks. The manager wants a service level of .95. The order interval is 10 days, and lead time is 2 days. Average demand for one item is 61 units per day, and the standard deviation of demand is 4 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 36 2 8 3 91 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: EM132245612

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