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Caring Hospital's dispensary reorders does of a drug when the supply on hand falls to 18 units. Lead time for resupply is three days. Given the typical usage over the last 10 days, what service level is achieved with the hospital's reorder policy?

Hint: Use the data to determine the mean and standard deviation of the demand.

Day 1 2 3 4 5 6 7 8 9 10
Units 3 4 7 5 5 5 6 4 3 5

Operation Management, Management Studies

  • Category:- Operation Management
  • Reference No.:- M977054

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