Barbara Flynn is in charge of maintaining hospital supplies at General Hospital. During the past year, the mean lead time demand for bandage BX-5 was 70 (and was normally distributed). Furthermore, the standard deviation for BX-5 was 5. Ms. Flynn would like to maintain a 90% service level. Refer to the standard normal table for z-values.
a) What safety stock level do you recommend for BX-5?
Safety stock =___ units (round your response to the nearest whole number).
b) What is the appropriate reorder point?
Reorder Point =____ units (round your response to the nearest whole number).
Expert Answer
Mean demand during lead
OR
PayPal Gateway not configured
OR
PayPal Gateway not configured
PayPal Gateway not configured
PayPal Gateway not configured