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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 2 days. Average demand for one item is 61 units per day, and the standard deviation of demand is 5 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 43 2 14 3 102
Determine the order quantities for cycles 1, 2, and 3: (Round your answers to the nearest whole number)
Cycle Units1 ________2 ________3 ________
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