Determine the reorder point-safety stock must be carried

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Reference no: EM131367058

A pharmacy dispenses a generic drug at an average rate of 80 milligrams per day. An examination of pharmacy records suggests that daily demand is approximately normal and has a standard deviation of 10 milligrams per day, Lead time is four days and the pharmacist wants out a stock out risk that does not exceed 1 percent.

a. Determine the reorder point (ROP)

b. How much safety stock must be carried?

c. What service level would a reorder point of 310 mg prowide?

Reference no: EM131367058

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