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Dana Farber also uses continuous review system to manage another type of less frequently used lymphoma treatment drug, Belinostat. The ordering cost is $250 per order, holding cost is $150 per dose. The annual (52 weeks) forecasted demand is 15,600 doses. Millennium Pharmaceuticals, the supplier, has been very reliable in delivery. The lead time is constantly 3 weeks after an order has been placed. Dana Farber documented the standard deviation of the demand for Belinostate during the 3-week lead time is 55 doses. Dana Farber would like maintain a 95% service level. Based on the provided information, determine the optimal order quantity (EOQ) and Reorder point (ROP).

Operation Management, Management Studies

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