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A pharmacy is open 200 days a year. One-day sales of a given drug follow a normal distribution with a mean of 75 units and a standard deviation of 15 units. After it is sent to the supplier, the delivery takes 4 days to be delivered. The fixed cost of order is 16 euros and the cost of possession per unit and year is 3 euros.
What is the value of the economic quantity
What is the cost of annual stock ownership if the order quantity per order equals 550 units?
What is the annual order cost if the quantity ordered per order equals 400 units?
What is the lowest order point that ensures that the probability of order breakage does not exceed 2%?
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