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 .98. The order interval is 13 days, and lead time is 3 days. Average demand for one item is 64 units per day, and the standard deviation of demand is 7 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 4
2 28
3 100

Determine the order quantities for cycles 1, 2, and 3: (Round your answers to the nearest whole number)

Reference no: EM132746279

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