Course Solutions Uncategorized Problem 13 31 Drugstore Uses Fixed Order Cycles Many Items Stocks Manager Wants Service Le Q34245449

Problem 13 31 Drugstore Uses Fixed Order Cycles Many Items Stocks Manager Wants Service Le Q34245449

Problem 13-31 A drugstore uses fixed-order cycles for many of theitems it stocks. The manager wants a service level of .98. Theorder interval is 12 days, and lead time is 2 days. Average demandfor one item is 62 units per day, and the standard deviation ofdemand is 8 units per day. Given the on-hand inventory at thereorder time for each order cycle shown in the following table. UseTable. Cycle On Hand 1 39 2 7 3 102 Determine the order quantitiesfor cycles 1, 2, and 3: (Round your answers to the nearest wholenumber) Cycle Units 1 2 3

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