Explanation to inventory management

Reference no: EM1393961

Barbara Flynn is in charge of maintaining hospital supplies at General Hospital. During the past year, the mean lead time demand for bandage BX-5 was 60 (and was normally distributed). Furthermore, the standard deviation for BX-5 was 7. Ms. Flynn would like to maintain a 90% service level.

a. What safety stock level do you recommend for BX-5?

b. What is the appropriate reorder point?

Reference no: EM1393961

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