Reference no: EM133425417

Green Med-Center is providing the one-shot Wave vaccine to walk-in Tulane students. Each Wave vaccine costs Green Med-Center $20, which is fully reimbursed by BCBS. In addition, Green Med-Center wants to include the long-term benefit of having one more student vaccinated, estimated at $50, in its revenue calculation (i.e., add $50 per student vaccinated as part of the revenue for each vaccine that is used).

Although Green Med-Center has access to a large supply of frozen vaccines, this vaccine needs to be thawed for at least 12 hours before it can be administered. Once thawed, the vaccines will expire after 8 hours.

Therefore, every night, Green Med-Center needs to decide how many vaccines to thaw overnight to be used tomorrow.

After learning about your Operations and Supply Chain Management course, they have asked for your help in making this decision. Using relevant historical data, Green-Med Center forecasts tomorrow's demand to be 275 units. However, relevant historical A/F ratios have an overall average of 1.15 and overall standard deviation of 0.75.

Include two decimals for all answers except Q* (expected values do not have to be integers).

1. Using the historical A/F ratios and assuming a Normal distribution for the demand, what adjusted mean μD and standard deviation σD would you expect for tomorrow's demand distribution?

For all remaining questions, assume that μD = 360 units and σD = 150 units.

2. What is the underage cost for the Wave vaccine?

3. What is the overage cost for the Wave vaccine?

4. What is the profit-maximizing number of vaccines Q* to thaw tonight?

For questions e-i, assume that Green Med-Center decides to thaw Q = 400 vaccines.

5 What is the stockout probability for the Wave vaccine?

6 How many students are expected to leave without a vaccine? Use the Standard Normal Loss function table.

7 How many Wave vaccines are expected to be administered?

8 How many Wave vaccines are expected to go to waste?

9. What is the expected fill rate?